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Real  Estate  Business 
Self=Taught 


A  Handbook  containing  Lessons  to  be  used  in 
connection  with  the  book  entitled  "How  to 
Buy  and  Sell, Real  Estate  at  a  Profit" 


By 

W.  A,  CARNEY 

Author  of  "How  to  Buy  and  Sell  Real  Estate  at  a  Profit/'  and 
"New  Secretary's  Manual " 


Published  in  Parts 


Published  by  W.  A.  CARNEY  at  Los  Angeles,  California,  1906 
Copyright,  1906,  by  W.  A.  CARNEY 


SUGGESTIONS  TO  THE  STUDENT. 

The  object  of  these  lessons  is  to  give  the  student  or  reader 
a  practical  knowledge  of  real  estate  and  of  the  real  estate  busi- 
ness. The  student  who  will  devote  a  definite  portion  of  each 
working  day  to  the  study  of  the  subject  will  make  the  most 
satisfactory  progress.  The  student  should  exercise  to  the  full- 
est extent  the  qualities  of  industry  and  perseverance ;  he  should 
concentrate  his  mind  on  the  subject  and  keep  it  there;  he 
should  study  a  few  pages  at  a  time  and  not  skip  from  one 
portion  of  the  lessons  to  another. 

"HOW  TO  BUY  AND  SELL  REAL  ESTATE  AT  A 
PROFIT"  is  referred  to  herein  as  the  "Text  Book"  or  as 
"Vol  I."  In  it,  the  Sections  are  numbered  from  i  to  163, 
inclusive,  and  the  Forms  from  i  upwards.  In  this  book,  the 
Sections  are  numbered  from  200  upward,  and  the  Forms  from 
100  upward.  ^  y 

The  "Final  Examination  Questions"  are  contained  in  a 
booklet  comprising  questions  and  blank  spaces  for  answers, 
and  suggestions  as  to  how  these  answers  should  be  made. 
Upon  being  written  up,  the  booklet  is  to  be  returned  to  the 
author  for  correction,  and,  upon  being  corrected,  is  sent  to 
the  student,  who  retains  it. 


LESSON  I. 

LARGELY  INTRODUCTORY. 

Section  200.  An  ancient  king  who  was  at  the  pinnacle  of 
his  power  and  greatness,  and  who  thought  he  might  have 
ready  access  to  anything  he  should  desire,  inquired  of  a  vener- 
able sage  in  his  kingdom  how  to  master  the  problems  of  Euclid. 
"There  is  no  royal  road  to  Euclid,"  the  sage  replied.  And  so 
it  must  be  said  to  every  one  entering  the  real  estate  business: 
There  is  no  royal  road  to  this  business ;  the  study  of  "Euclid 
and  of  the  real  estate  business  must  be  hard  and  tense.  There 
can  be  no  avoiding  or  going  around  each  successive  proposi- 
tion which  forms  the  basis  of  future  progress  and  no  shirking 
or  omitting  of  detail;  every  step  requires  close  attention  and 
reflection. 

Sec.  201.  The  impression  prevails  in  some  quarters  that 
the  real  estate  business  is  scarcely  respectable.  Such  is  not 
the  case,  however.  The  real  estate  business  is  as  honorable 
and  dignified  a  vocation  as  any  in  which  men  are  engaged,  and 
the  intention  of  every  person  entering  the  profession  of  real 
estate  broker  should  be  to  maintain,  in  all  his  transactions,  a 
strict  adherence  to  sound  principles  of  morality  and  justice. 
In  this  way  he  will  reflect  credit  on  the  profession  and  be 
justly  entitled  to  the  respect  and  confidence  of  his  fellow-men. 

Sec.  202.  The  young  real  estate  broker  should  pay  atten- 
tion to  the  formation  of  character.  The  ability  to  restrain 
one's  appetite,  passions,  tongue  and  temper  is  of  the  first  im- 
portance. One  must  be  the  master,  not  the  slave,  of  himself; 
ii  he  cannot  govern  himself,  he  cannot  govern  others.  Indeed, 
a  good  character  is  vastly  more  important  than  a  great  fortune. 
A  United  States  Senator  who  died  recently,  wrote  the  follow- 
ing in  his  will :  "I  hope  that  my  sons  will,  early  in  life,  realize, 


342111 


4  REAL  ESTATE  SELF-TAUGHT 

above  all  else,  that  the  only  thing  more  difficult  to  build  up 
than  an  independent  fortune,  is  character,  and  that  the  only 
safeguards  of  character  are  the  Ten  Commandments  and  the 
Sermon  on  the  Mount." 

Sec.  203.  Among  the  components  of  a  good  character  are 
honesty,  politeness,  confidence,  energy,  economy  and  perse- 
verence.  These  will  be  considered  severally. 

Sec.  204.  Honesty  is  not  only  the  best  policy,  but  it  is  in 
strict  accordance  with  a  right  conscience.  The  real  estate  man 
who  practices  deceit  and  trickery  may  be  successful  for  the 
time  being,  but  he  is  pretty  certain  to  lose  eventually.  The 
confidence  which  his  clients  repose  in  him  is  a  part  of  his  stock 
in  trade,  and  if  he  violates  that  confidence  his  clients  will 
desert  him;  moreover,  they  will  take  particular  occasion  to 
make  known  to  others  his  true  character.  A  real  estate  broker, 
by  reason  of  his  knowledge  of  the  business,  may  be  able  to 
deceive  his  clients  in  respect  to  property,  but  clients  are  apt 
to  be  suspicious  and  watchful,  and  their  knowledge  of  human 
nature  may  be  more  keen  than  that  of  the  broker;  hence,  it 
behooves  the  broker,  from  every  point  of  view,  to  be  honest. 

Sec.  205.  Politeness  costs  nothing  and  accomplishes  much. 
The  real  estate  broker  should  cultivate  a  charm  of  manner  and 
all  those  personal  qualities  that  will  attract  people  to  him. 

Sec.  206.  Confidence,  or  self-reliance,  is  very  essential  to 
success  in  the  real  estate  business.  To  believe  and  go  forward 
is  the  key  to  success  and  happiness.  Doubt  and  distrust  are 
negative  and  corrosive  forces.  The  man  who  engages  in  the 
real  estate  business  should  resolve  at  the  beginning  to  rely  on 
his  own  judgment.  Even  if  he  be  rich,  and  has  heretofore  de- 
pended on  some  relative  or  other  person,  let  him  cut  loose  and 
paddle  his  own  canoe  adown  the  stream  of  events. 

Sec.  207.  Energy  is  another  name  for  enthusiasm.  En- 
thusiasm means  an  optimistic  whole-heartedness  in  an  under- 
taking. A  man  can  do  best  that  which  he  likes  best.  Hi 


REAL  ESTATE  SELF-TAUGHT  5 

never  can  succeed  in  this  age  of  competition  unless  he  finds 
real  pleasure  in  his  work.  The  making  of  money  is  not  a 
sufficient  incentive ;  a  man  must  find  the  highest  enjoyment  in 
the  accomplishment  of  the  task  itself.  An  energetic  man  seizes 
events  and  makes  them  subservient  to  his  will ;  whereas,  a  man 
lacking  in  energy  is  controlled  by  events  which  carry  him  in 
opposition  to  his  will.  A  live,  active,  confident  man  is  a  mag- 
net that  draws  people  and  their  money  around  him,  and  if  he 
rises  to  the  occasion,  as  he  should,  many  things  will  lie  in  his 
power  that  otherwise  would  have  gone  to  some  other  magnetic 
individual. 

Sec.  208.  The  man  who  learns  to  save  and  who  is  thrifty 
will  fortify  his  self-reliance.  The  thrifty  man  is  not  troubled 
about  to-morrow,  for  he  is  prepared  for  to-morrow.  Mr. 
Shailer  Mathews  defines  economy  as  that  way  of  living  that 
systematically  transfers  a  portion  of  one's  income  to  one's  capi- 
tal, and  he  states  that  if  any  man  who  earns  would,  at  the 
expense  of  some  self-denial,  capitalize  ten  per  cent,  of  his  in- 
come, his  future  would  be  more  under  his  own  control  and  his 
life  would  be  more  full  of  reliance  and  self-respect.  It  is  not 
what  a  man  earns,  but  what  he  capitalizes,  that  really  gives  him 
permanent  economic  independence.  The  rule  should  be  to  save 
before  spending,  rather  than  to  save  what  is  not  spent.  To  put 
this  rule  into  effect,  it  is  sometimes  necessary  for  a  man  to  go 
in  debt  for  the  purchase  of  a  lot,  or  a  home,  or  building  and 
loan  stock,  as  then  he  must  save  to  meet  the  payments.  A  real 
estate  broker  should  make  it  a  point  ta  accumulate  capital,  as 
he  will  have  many  opportunities  of  investing  it  advantageously 
in  real  estate.  No  one  knows  whether  a  man  who  always  pays 
cash  is  honest  or  not,  and  no  one  cares  to  know.  A  man 
should  be  in  debt  to  a  reasonable  extent  for  two' reasons :  First, 
to  establish  his  credit  against  the  time  he  may  need  credit,  and 
second,  to  lay  the  foundation  for  a  reputation  for  honesty  and 
promptness  in  payment  of  bills.  Debt  is  generally  recognized 


0  REAL  ESTATE  SELF-TAUGHT 

as  one  of  the  best  incentives  to  prudent  foresight  on  the  part 
of  any  person,  as,  where  there  are  certain  payments  to  be  made 
at  the  end  of  the  month,  household  and  personal  expenditures 
are  regulated  to  that  end,  with  the  result  that  a  transfer  is 
made  at  stated  intervals  from  income  to  capital. 

Sec.  209.  A  person  should  enter  the  real  estate  business 
with  the  expectation  of  continuing  in  it.  A  man's  efforts  in 
any  particular  line,  if  properly  directed,  become  cumulative 
after  a  time,  and  if  he  then  quits,  he  quits  when  he  is  about 
t&  receive  the  reward  of  his  labors.  Courage  to  carry  on  the 
work,  in  spite  of  obstacles  and  disappointments,  is  essential  to 
success.  After  triumphantly  treading  the  stony  road  of  ex- 
perience, let  us  hope  that  the  student  who  peruses  these  pages 
will  finally  stand  at  the  summit,  the  typical  American  real 
estate  broker,  the  most  perfect,  progressive  and  well-equipped 
of  his  kind. 


REAL  ESTATE  SELF-TAUGHT 


LESSON  II. 
OF  REAL  ESTATE  IN  GENERAL. 

Sec.  210.  Let  reader  or  student  now  study  pages  5  to  10  of 
the  Text  Book,  viz. :  "How  to  Buy  and  Sell  Real  Estate  at  a 
Profit,"  which,  in  these  Lessons,  is  referred  to  as  "Vol.  II"  or 
as  "Text  Book."  This  lesson  contains  all  the  definitions  and 
particulars  relating  to  real  estate  in  general  that  the  real  estate 
broker  will  be  likely  to  meet  with  in  the  ordinary  course  of 
business. 


REAL  ESTATE  SELF-TAUGHT 


LESSON  III. 

OF  IX)CATION  AND  EQUIPMENT  OF  OFFICE. 

Sec.  211.  A  real  estate  broker  should,  if  possible,  locate  on 
the  ground  floor,  where  people  can  walk  in  without  effort,  and 
where  he  can  place  his  signs  in  the  window  or  on  the  outside 
to  attract  attention.  If  he  is  in  a  large  city,  where  there  are 
building  having  elevators,  he  should  locate  in  such  building, 
as  people,  at  the  present  time,  will  not  walk  to  the  second  story 
if  they  can  ride.  One  can  begin,  of  course,  with  only  a  small 
desk  and  occupy  space  in  an  office  at  a  cost  of  not  exceeding 
$5.00  or  $10.00  per  month,  and,  in  the  real  estate  business, 
many  men  who  now  have  finely  furnished  offices,  began  in  this 
way.  The  size  of  the  desk  is  no  limit  to  the  amount  of  business 
that  can  be  transacted  over  it.  Ordinarily,  the  broker  cannot 
afford  to  incur  heavy  expense  for  office  rentals  until  well  estab- 
lished. In  large  cities,  ground, floor  offices  are  generally  so. ex- 
pensive in  the  way  of  rent  that  a  large  room,  if  devoted  to  the 
real  estate  business,  is  divided  by  the  means  of  railings  into 
spaces,  and  a  number  of  persons  occupy  the  same  room.  This 
is  not  always  desirable,  as  among  the  tenants  may  be  some 
unscrupulous  fellow  who  will  "butt  in"  when  one  is  talking  to 
a  customer.  The  expense  of  telephone  rentals  is  considerable, 
and  this  causes  office  men  to  herd  together  where  they  can  use 
one  'phone,  with  extensions  to  several  desks.  On  the  whole,  a 
real  estate  broker  or  firrrTwill  find  that  an  office,  or  two  or  more 
connecting  offices,  in  an  up-to-date  building,  where  light,  heat 
and  janitor  service  are  included  in  the  rentals,  to  be  best 
adapted  to  the  business,  as,  if  the  broker  has  the  right  kind  of 
property  at  the  right  prices  people  will  find  him  even  though 
he  be  on  the  top  floor. 


REAL  ESTATE  SEIyF-TAUGHT  $ 

Sec.  212.  The  furniture  and  furnishings  should  be  in  keep- 
ing with  the  character  of  the  office  and  be  pleasant  and  har- 
monious in  effect.  If  a  broker  has  not  sufficient  business  to 
warrant  him  in  employing  a  stenographer,  he  should  procure, 
and  learn  to  run,  a  typewriter,  as,  with  a  typewriter  he  can  do 
more  rapid  and  legible  work  than  with  a  pen,  and  a  typewrit- 
ten letter  is  more  modern  and  has  a  better  effect. 

Sec.  213.  At  the  outset  the  broker  should  adopt  some  dis- 
tinctive mark  or  sign  in  connection  with  his  name,  such  as 


and  this  should  appear  on  all  -his  cards,  letter  heads  and  sign- 
boards, so  that  any  one  upon  seeing  the  name  and  sign  at  a 
distance  will  instinctively  say:  "That's  Baldwin's." 

Sec.  214.  Stationery  should  be  of  good  quality  and  artis- 
tically printed.  It  is  the  broker's  representative  among  per- 
sons who  do  not  know  him,  and  will  make  a  good  or  bad  im- 
pression as  it  is  excellent  or  cheap. 

Sec.  215.  For  listing  property  some  brokers  use  simply  an 
ordinary  blank  book.  At  the  present  time  the  vast  majority  of 
brokers  use  cards.  These  cards  are  of  two  kinds ;  one  has  both 
the  description  of  the  property  and  the  contract  of  the  owner 
as  to  commission  and  length  of  time  the  property  is  to  be  listed 
on  one  side  of  the  card ;  the  other  form  of  card  has  the  descrip- 
tion on  one  side  and  agreement  as  to  commissions,  etc.,  on  the 
reverse.  The  latter  form  has  some  advantages  over  the  former, 


10  REAL  ESTATE  SEUP-TAUGHT 

but  costs  more  to  print.  The  cards  are  arranged  in  a  tray, 
alphabetically,  either  by  names  of  owners  or  names  of  streets, 
etc.,  or  by  valuations.  By  the  use  of  cards,  listing  is  reduced 
to  a  system,  but  care  must  be  taken  to  replace  the  cards  where 
they  belong  or  confusion  results.  One  publisher  furnishes  for 
one  dollar  a  loose-leaf  listing  outfit  which  is  very  convenient 
and  practical.  (See  also  Lesson  V,  Listing  and  Advertising.) 

Sec.  216.  As  soon  as  a  business  has  assumed  any  magni- 
tude, it  is  well  to  arrange  the  cards  according  to  whether  the 
property  is  in  the  city  or  in  the  country,  and  the  following  is 
suggested  as  a  suitable  classification : 

CITY.  Business,  semi-business,  lots,  houses  and  lots. 

COUNTRY.    Suburban,  beach  or  sea    shore,    ranch    and 
farm,  groves  and  orchards,  mining. 

BUSINESS  CHANCES.     Bakeries,    cigar    stands,    laun- 
dries, lodging  houses,  restaurants,  etc. 
Houses  for  rent,  rooms   for  rent,  furnished 
and  unfurnished. 

Houses  and  lots  can  be  arranged  by  prices,  and  separated 
by  guide  cards  indicating  the  price. 

Sec.  217.  As  to  buying  an  interest  in  a  firm  already  estab- 
lished, it  may  be  said  that  the  buyer  should  first  investigate 
the  matter  very  thoroughly.  Any  list  of  property  which  a  firm 
may  have  is  not  of  very  great  value  unless  verified  anew.  A 
partnership  is  often  times  an  uncertain  ship  in  which  to  sail. 
Each  partner  can  contract  debts  in  the  name  of  the  firm  and 
each  is  liable  for  the  entire  debts  of  the  firm.  Tricky  real  estate 
firms  have  been  known  to  sell  one-half  interests  to  three  or 
more  persons.  In  large  cities  some  crooked  individual  en- 
gaged in  the  real  estate  business  will  advertise  for  a  man  to 
learn  a  paying  business,  and  offer  to  take  him  in  as  a  partner 
and  teach  him  the  business  for  $250  or  $300.  Two  or  three 
confederates  are  necessary  to  work  the  scheme  successfully, 
and  when  the  buyer  appears  in  answer  to  the  advertisement 


REAL  ESTATE  SELF-TAUGHT  1 1 

the  advertiser  seems  to  be  very  busy.  He  calls  up  his  confed- 
erates on  the  'phone,  and  they,  in  turn,  call  him  up  and  big 
deals  in  real  estate  are  discussed,  and  the  large  commissions 
which  will  accrue  are  brought  out  prominently.  If  the  inquirer 
asks  for  references,  he  is  referred  to  one  or  both  of  the  con- 
federates, who  give  the  advertiser  an  excellent  character.  The 
advertiser  declares  that  he  is  driven  to  death  with  business  and 
cannot  find  time  to  sleep.  Business  looks  good  to  the  innocent 
victim  and  he  invests.  Shortly  afterward  the  advertiser  is 
called  away  and  the  victim  is  left  alone  and  remains  alone  so 
much  that  he  gets  lonesome.  The  'phone  rings  no  more,  and 
he  finds  that  he  has  paid  a  high  price  for  an  ordinary  roll-top 
desk  and  office  rug. 

Sec.  218.  A  real  estate  firm,  doing  practically  no  business, 
in  one  of  the  large  coast  cities,  decided  to  sell  out  in  this  way : 
One  partner  would  offer  his  half  interest  for  sale,  no  price  men- 
tioned, with  the  understanding  that  the  other  partner  would 
remain  and  teach  the  new  partner  the  business,  and  as  soon  as 
the  new  partner  was  fairly  started  would  sell  out  also  and  thus 
they  would  both  be  out.  The  half  interest  had  been  advertised 
for  some  time  without  success,  when  one  day  in  walked  a  large 
and  well-dressed  colored  man,  who  inquired  about  the  interest 
in  the  business.  They  had  intended  to  ask  $300  for  one-half 
interest,  but  in  view  of  the  circumstances,  gave  the  price  as 
$1,000.  The  visitor  made  some  inquiries  in  regard  to  the  busi- 
ness and  stated  that  he  would  think  the  matter  over  and  return 
on  the  following  Monday,  it  being  then  Saturday.  After  the 
colored  man  had  gone  out,  the  partners  looked  at  each  other 
in  a  dazed  sort  of  way,  and  one  of  them  exclaimed :  "If  he  re- 
turns, what  are  we  going  to  do  with  him?"  "I'll  tell  you," 
said  the  other,  "let's  open  a  branch  office  in  A.,  as  the  real 
estate  business  is  brisk  there,  and  put  him  in  charge."  Mon- 
day came  and  so  did  the  colored  man  with  his  fifty  twenty- 
dollar  gold  pieces.  He  was  given  an  interest  in  the  business 


12  REAL  ESTATE  SELF-TAUGHT 

and  the  plan  of  opening  a  branch  office  at  A.  and  putting  him 
in  charge,  was  broached  to  him.  He  was  entirely  agreeable  to 
the  project;  one  of  the  partners  went  with  him  to  A.,  where 
the  branch  office  was  fitted  up,  the  colored  man  bearing  the 
expense,  of  course,  and  he  was  duly  installed,  and  the  partner 
returned  to  his  native  heath.  After  a  time  the  colored  man  re- 
turned, said  that  he  had  closed  the  office  in  A.,  and  sold  the 
furniture,  and  wanted  to  know  how  much  of  the  proceeds  the 
firm  desired.  He  said  he  had  done  no  business.  He  was  told 
that  the  firm  did  not  desire  anything.  He  expressed  himself 
as  well  satisfied  with  his  experience  and  stated  that  he  was 
going  back  to  South  Africa,  from  whence  he  had  come  and 
where  he  had  made  money  in  the  diamond  fields,  to  show  those 
negroes  down  there  how  to  do  high  finance  in  real  estate.  Tt 
is  not  to  be  inferred  from  what  has  been  said  that  every  interest 
in  a  real  estate  firm  is  of  doubtful  value;  some  such  interests 
are  very  valuable  and  desirable.  As  heretofore  stated,  the  pro- 
posed purchaser  of  a  partnership  interest  should  investigate 
thoroughly. 

Sec.  219.  A  broker  should  have  a  large  map,  having  the 
outline  of  the  world  on  one  side  and  of  the  United  States  on 
the  other,  hanging  on  the  wall;  also  a  large  wall  map  of  his 
own  State  and  of  his  county,  and,  if  in  a  large  city,  of  the  city 
also.  Maps  are  interesting  and  attractive,  and  many  people 
who  have  not  examined  a  map  since  leaving  school  take 
pleasure  in  looking  them  over;  besides,  they  lend  an  air  of  im- 
portance to  the  broker's  surroundings. 

Sec.  220.  In  some  of  the  large  cities  map  books  are  obtain- 
able, showing  the  names  of  every  tract  and  the  numbers  and 
exact  dimensions  of  every  lot.  These  are  expensive  but  val- 
uable aids  in  carrying  on  the  real  estate  business.  In  Los  An- 
geles the  publisher  of  a  book  of  this  kind  also  furnishes  a  book 
containing  the  names  of  the  owners  of  each  lot,  and  entries  are 
made  in  this  name-book  every  day  by  the  clerk  of  the  pub- 


REAL  ESTATE  SELF-TAUGHT  13 

lisher,  giving  changes  of  ownership  as  shown  by  the  deeds  re- 
corded the  previous  day  in  the  County  Recorder's  office.  Maps 
or  blue-prints  of  new  subdivisions  can  usually  be  obtained  from 
the  principal  agents  for  such  subdivisions. 

Sec.  221.  If  there  is  a  Board  of  Trade  or  Chamber  of  Com- 
merce in  his  town,  the  broker  should  become  a  member.  He 
should  also  join  one  of  the  political  or  business  men's  clubs,  as, 
in  meeting  men  of  affairs  at  such  clubs,  he  will  acquire  advance 
information  along  real  estate  lines  that  will  be  of  value  to  him. 

Sec.  222.  If  there  is  a  realty  association  or  board  in  his 
city  or  county,  it  would  be  well  for  the  broker  to  join.  The 
constitution  of  the  Los  Angeles  Realty  Board  provides  that 
the  objects  of  that  corporation  shall  be  to  secure  the  benefit  of 
united  effort  and  concentrated  power  among  its  members  to 
the  end  that  the  annoyance  and  evils  which  had,  in  the  past, 
been  encountered  in  dealing  in  real  estate,  might  be  abated ;  to 
promote  good-fellowship  and  fair  dealing;  to  protect  the  mem- 
bers of  the  board  and  the  public  in  general  from  reckless  and 
dishonest  dealers ;  to  promote  the  enactment  of  legislation  for 
the  protection  of  property  rights  and  dealings  pertaining  there- 
to and  to  do  all  else  in  the  power  of  the  board  which  may  tend 
to  the  upbuilding,  stability  and  dignity  of  dealing  in  real  estate. 
Applications  for  membership  in  the  Los  Angeles  Board  must 
be  signed  by  the  applicants,  be  approved  by  two  dealers  who 
are  members  of  the  board  and  be  accompanied  by  the  member- 
ship fee.  The  By-Laws  provide,  among  other  things,  for  an 
Arbitration  Committee,  composed  of  five  members,  to  take 
cognizance  of  and  have  jurisdiction  over  all  claims  and  matters 
of  difference  between  members  of  the  board  in  their  capacities 
as  real  estate  brokers,  agents,  owners  or  partners,  under  certain 
prescribed  rules;  also  for  an  Appraisal  Committee. 

Sec.  223.  If  the  broker  is  also  engaged  in  the  building 
business,  a  membership  in  a  builder's  exchange  will  be  ad- 
vantageous. Suggestions  for  organizing  such  an  exchange  are 


14  REAL  ESTATE  SELF-TAUGHT 

given  in  Form  No.  153.  Where  a  new  town  is  started  in  the 
country,  the  question  of  incorporating  same  will  arise  as  soon 
as  there  are  a  sufficient  number  of  inhabitants  for  the  purpose. 
A  petition  for  incorporating  a  town  is  given  in  Form  No.  154. 
In  a  small  community  there  are  always  two  or  more  contend- 
ing factions — one  faction  being  in  favor  of  progress  and  the 
other  being  content  to  let  things  remain  as  they  are.  Even 
the  change  of  the  postoffice  for  half  a  block  in  either  direction 
(Form  No.  155)  will  divide  the  community  into  two  parties 
and  arouse  considerable  feeling. 

Sec.  224.  The  broker  should  make  it  a  point  to  study  men 
as  they  appear  in  action  on  boards  of  directors,  in  lodges, 
public  meetings  and  in  other  places  where  man  is  brought  into 
keen,  yet  withal  good-natured,  competition  with  his  fellows — 
where  will  is  pitted  against  will.  He  should  learn  to  listen  in- 
tently, and  think  steadily,  clearly  and  comprehensively  amid 
distracting  surroundings.  Then  when  he  sees  a  number  of 
others  in  a  dilemma,  he  should  quickly  offer  a  sensible  and 
practicable  solution  of  the  problem,  and,  if  his  solution  is 
feasible,  he  will  have  scored  a  strong  point  in  favor  of  the 
soundness  and  alertness  of  his  judgment  and  of  leadership. 

Sec.  225.  The  broker  should  not  omit  to  cultivate  the  ac- 
quaintance of  bankers  and  capitalists,  as  he  will  need  their  co- 
operation and  good  will  in  the  making  of  loans  and  perhaps  in 
the  purchase  of  properties  which  will  yield  a  profit  to  the  in- 
vestor. Real  estate  brokers  often  lose  sight  of  the  fact  that 
there  are  two  "ends,"  as  the  saying  is,  to  the  real  estate  busi- 
ness, namely,  the  buying  "end"  and  the  selling  "end,"  and  that 
one  is  equally  as  important  as  the  other.  A  broker  might  have 
all  the  property  in  a  county  listed,  but  he  would  not  be  able 
to  sell  until  he  had  buyers. 

Sec.  226.  There  are  many  ways  in  which  a  real  estate 
broker  may  be  active  and  useful  in  a  community,  and  at  the 
same  time  advance  his  own  interests ;  as,  for  instance,  by  con- 


REAL  ESTATE  SELF-TAUGHT  15 

verting  picturesque  spots  into  remunerative  pleasure  grounds; 
by  erecting  and  operating  hotels  and  apartment  houses ;  in  ex- 
ploiting mines  and  mineral  lands,  either  by  organizing  corpor- 
ations to  take  over  promising  prospects  and  operate  them  (the 
broker  arranging  to  act  as  secretary  and  provide  the  office)  or 
by  selling  such  prospects  to  practical  mining  men ;  and  by  cre- 
ating sentiment  in  favor  of  good  roads.  Good  roads  stimulate 
travel,  popularize  the  sections  traversed,  increase  land  values, 
attract  new  residents,  build  up  trade  and  improve  conditions 
generally. 


1 6  REAL  ESTATE  SELF-TAUGHT 


LESSON  IV. 

OF  SECURING  APPOINTMENT  AND  ACTING  AS  NOTARY  PUBUC. 

(See  also  Text  Book,  or  Part  Two,  Page  51,  Sec.  88.) 
Sec.  227.  In  many  cases  a  real  estate  broker  will  find  it  ad- 
vantageous to  secure  an  appointment  as  notary  public,  as  the 
revenue  from  that  source  is  considerable,  and  affords  him  an 
opportunity  to  meet  people  with  whom  he  otherwise  would  not 
become  acquainted. 

Sec.  228.  A  notary  public  is  an  officer  appointed  to  per- 
form certain  duties,  prescribed  by  law,  within,  but  not  outside 
of,  the  limits  of  a  certain  County  of  a  certain  State  or  Terri- 
tory. In  some  of  the  States  the  applicant  for  notarial  honors 
has  to  pass  an  examination  to  determine  his  fitness  for  the 
office.  In  California,  the  appointment  is  made  by  the  Gov- 
ernor ;  in  Texas,  by  the  Governor,  with  the  consent  and  advice 
of  the  Senate  while  in  regular  session.  (See  Form  No.  100.) 

Sec.  229.  Upon  receiving  his  appointment  the  applicant  is 
required  to  execute  an  official  bond,  in  a  sum  varying  from 
$1,000  to  $5,000,  and  such  bond  must  be  executed  by  the  notary 
and  two  good  and  sufficient  sureties.  In  most  of  the  States  a 
bonding  company  (such  as  the  American  Bonding  Company 
of  Baltimore)  will  be  accepted  in  lieu  of  individual  sureties.  A 
notary  often  feels  a  delicacy  about  asking  influential  friends  to 
go  on  his  official  bond,  and  where  the  bonding  company's  bond 
will  be  accepted  it  should  be  given  preference.  A  nominal  fee 
is  charged  for  issuing  this  bond.  The  notarial  bond,  in  Cali- 
fornia, must  be  approved  by  a  judge  of  the  Superior  Court  of 
the  County  in  which  the  notary  is  to  act,  and,  upon  such  ap- 
proval, the  notary  must  take  the  official  oath,  and  the  oath  and 
the  bond  are  then  recorded  in  the  office  of  the  County  Recorder. 


REAL  ESTATE  SELF-TAUGHT  I? 

Sec.  230.  In  order  to  do  business,  the  notary  will  require 
a  notarial  record,  a  notarial  seal  and  proper  blank  forms  of 
certificates  of  acknowledgment.  A  notary  should  perform  all 
his  official  acts  with  scrupulous  care  and  fidelity. 

Sec.  231.  If  the  appointee  fails  to  qualify  within  the  pre- 
scribed time,  the  appointment  becomes  vacated,  and  the  appli- 
cant must  begin  anew: 

Sec.  232.  The  term  of  office  varies  in  the  several  States 
and  runs  from  two  to  four  years  from  the  date  of  the  appoint- 
ment. In  some  of  the  States  a  notary  is  required  to  have  sub- 
stantially these  words  after  his  signature:  "My  commission 
expires " 

Sec.  233.  The  duties  of  a  notary  are,  in  general,  these :  To 
take  acknowledgments,  and  to  certify  all  acknowledgments 
and  proofs  of  instruments  in  writing,  such  as  deeds,  mortgages, 
satisfaction  of  mortgage,  deeds  of  trusts,  homesteads,  powers 
of  attorney,  etc.  Also  to  take  and  certify  depositions  and  affi- 
davits and  administer  oaths,  and  to  make  declarations  of  pro- 
test in  respect  to  promissory  notes  and  bills  of  exchange. 

Sec.  234.  The  maximum  fees  which  a  notary  may  collect 
for  his  official  services  are  fixed  by  law,  and,  at  the  time  of  ob- 
taining his  seal,  etc.,  the  notary  should  procure  a  fee  card,  which 
he  should  keep  posted  up  in  his  office  for  the  information  of 
customers.  The  notary  can  waive  the  regular  fees  or  perform 
them  at  reduced  rates;  in  fact,  it  is  customary  where  a  notary 
has  a  large  number  of  acknowledgments  to  take  for  one  party 
to  charge  but  one-half  the  regular  fees.  If  any  one  questions 
the  amount  of  the  fee  he  should  be  referred  to  the  fee  card.  The 
majority  of  persons  are  informed  as  to  the  fee  a  notary  is  en- 
titled to  charge,  but  have  considerable  reluctance  about  paying 
it.  Where  the  notary  is  asked  to  go  away  from  his  office  to 
perform  official  acts,  or  to  go  after  office  hours,  he  should,  if 
the  distance  be  great  or  he  be  put  to  considerable  inconvenience, 
make  a  moderate  charge  in  addition  to  his  regular  fees.  Per- 


l8  REAI,  ESTATE  SELF-TAUGHT 

sons  accustomed  to  business  have  no  objection  to  paying  such 
reasonable  additional  fees.  The  payment  of  notary  fees  touches 
a  tender  spot  in  some  persons,  particularly  wealthy  persons  who 
could  well  afford  to  be  the  least  sensitive  on  the  subject,  and 
the  real  estate  broker  will  do  well  to  exercise  discretion  as  to 
fees  if  he  has  an  inkling  that  fees  are  distasteful  to  a  customer 
who  might  be  a  seller  or  a  buyer  in  the  future. 

Sec.  235.  In  taking  an  acknowledgment,  the  instrument 
should  be  signed  in  the  presence  of  the  notary,  and  the  notary 
should  then  ask  the  party  signing:  "Do  you  acknowledge  this 
to  be  your  signature?"  and  he  replies:  "I  do."  If  there  is  a 
printed  form  of  notarial  acknowledgment  on  the  instrument,  that 
should  be  used;  if  not,  the  notary  should  attach  with  paste  his 
own  printed  form.  The  seal  should  then  be  impressed,  and,  if 
the  attached  form  is  used,  through  that  and  through  the  instru- 
ment. Two  acts  are  necessary:  The  acknowledgment  by  the 
party  signing,  and  the  certification  of  the  notary.  The  notary 
then  makes  an  entry  of  the  transaction  in  his  notarial  record. 
(See  Text  Book,  pages  72  to  74.) 

Sec.  236.  When  an  instrument  in  writing,  such  as  a  deed, 
is  presented  to  a  notary  for  his  acknowledgment  and  certifica- 
tion, he  is  not  called  upon  to  pass  judgment  upon  the  sufficiency 
of  the  instrument.  If,  for  instance,  he  discovers  that  a  deed  is 
made  by  a  married  man,  and  that  his  wife  has  not  joined  in 
the  deed,  and  that  she  is  competent  to  do  so,  he  may  call  the 
attention  of  the  grantee,  if  he  is  present,  to  the  fact.  The  notary 
has  no  jurisdiction  in  such  cases,  but  he  should  deem  it  his  duty 
to  point  out  to  the  parties  any  defects  apparent  on  the  face  of  the 
instrument. 

Sec.  237.  When  a  party  appears  before  a  notary  to  make  an 
acknowledgment,  and  he  is  unknown  to  the  notary,  the  notary 
should  require  of  him  to  prove  himself  to  be  the  person  he 
claims  to  be,  on  the  oath  of  a  creditable  witness,  examined  and 
sworn  by  the  notary  for  that  purpose.  (See  Form  No.  24,  page 


REAL  ESTATE  SELF-TAUGHT  1 9 

73,  Text  Book.)  In  this  matter  also,  the  notary  should  use  dis- 
cretion, keeping  in  mind  the  fact  that  all  of  his  official  acts 
should  be  so  performed  that  he  and  his  bondsmen  will  incur  no 
liability.  In  some  of  the  States  the  wife  must  be  examined 
privily  and  apart  from  her  husband,  and  the  contents  of  the 
instrument  must  be  fully  explained  to  her,  and  the  notary's  cer- 
tificate must  recite  these  facts.  In  certain  cases  a  notary  is  dis- 
qualified from  acting. 

Sec.  238.  Frauds  have  been  committed  by  persons  who,  upon 
short  acquaintance  with  a  notary,  have  introduced  to  him  a  con- 
federate, representing  such  confederate  as  Mr.  or  Mrs.  So-and-So, 
a  property  owner  of  record.  They  then  ask  the  notary  to  take 
the  acknowledgment  of  the  imposter  to  a  forged  signature  on  a 
deed  or  mortgage  conveying  property  to  an  innocent  third  party, 
and  the  notary,  by  taking  and  certifying  the  acknowledgment, 
unwittingly  abets  the  deception.  Having  secured  the  money, 
the  confederates  disappear,  leaving  the  notary  and  his  bonds- 
men to  be  brought  to  bar  for  the  alleged  negligence  of  the 
notary. 

Sec.  239.  The  laws  of  each  State  prescribe  certain  forms 
of  deeds  and  of  acknowledgment  for  the  transfer  of  property  in 
that  State,  and  such  forms  must  be  followed  even  though  the 
instrument  be  executed  in  another  State.  In  order  .that  /the 
notary  should  be  informed  as  to  such  forms,  and  as  to  his 
duties  in  every  other  respect,  he  should  have  in  his  office  a  copy 
of  "John's  American  Notary  Manual."  (See  advertising  pages 
of  this  book.) 


2O  REAL  ESTATE  SELF-TAUGHT. 


LESSON  V. 

LISTING   AND  ADVERTISING. 

Section  240.  As  soon  as  a  real  estate  broker  has  opened  his 
office  he  should  let  the  public  know  that  he  is  ready  for  business. 
Prior  thereto  he  should  have  listed  considerable  property  so  as 
to  be  prepared  for  immediate  inquiries.  He  can  inform  the 
public  of  his  new  calling  by  means  of  advertisements  in  the 
local  newspapers,  by  distribution  of  business  cards,  by  sending 
out  circulars  and  by  word  of  mouth,  and  by  sign-boards  on  the 
properties  which  he  has  listed. 

Sec.  241.  Some  brokers  go  about  listing  in  a  systematic 
manner.  Let  us  suppose  that  there  is  a  tract  of  land  near  a 
depot  or  railroad  yard,  or  lying  along  or  close  to  a  railroad, 
which  tract  was  built  upon  years  ago  and  is  now  occupied  by 
houses  that  are  inhabited  by  railroad  employes.  This  district, 
because  of  its  proximity  to  the  railroad,  is  not  a  desirable  resi- 
dence section.  Let  us  suppose  further  that  a  new  and  larger 
depot  is  to  be  built  and  that  there  will  be  a  demand  for  land 
around  this  depot  for  warehouse  sites.  Now,  the  man  who  goes 
systematically  about  listing  will  take  a  map  of  the  tract  in  which 
this  district  lies,  make  a  list  of  all  the  lots  of  the  tract  on 
legal-cap  or  fools-cap,  placing  the  numbers  of  the  lots  at  the 
left  hand  of  the  paper  and  leaving  one  blank  line  opposite  to 
each  number.  Then,  if  he  doesn't  have  a  tract  and  address  book, 
he  goes  to  the  County  or  City  Assessor's  office  and  obtains  per- 
mission to  look  over  the  Assessor's  book  for  that  tract,  in  which 
book  he  will  find  the  name  and  address  of  the  owner  of  each 
lot  at  the  date  of  the  last  assessment.  Having  secured  these, 
he  interviews  all  such  owners  who  are  in  town  and  obtains  their 
price,  making  a  separate  listing  card  for  each,  and,  whenever 
he  can  do  so,  gets  such  owner  to  give  him  the  exclusive  agency 


REAL  ESTATE  SELF-TAUGHT  21 

for  say  sixty  days  or  more.  Some  owners  will  sign  the  listing 
cards;  others  will  not.  He  can  sometimes  list  a  real  bargain 
by  writing  for  price  to  an  out-of-town  owner  who  does  not 
keep  posted  as  to  movements  in  city  property.  If  he  finds  a 
particularly  desirable  corner,  he  may  pay  from  $10  to  $100  for 
an  exclusive  agency  option  (See  Form  No.  112)  for  say  ninety 
days  or  six  months.  Having  gone  over  the  field  thoroughly,  he 
is  in  a  position  to  say  to  intending  purchasers  just  where  is  the 
cheapest  piece  of  property  in  the  district.  There  is  consid- 
erable work  attached  to  this  method  of  listing,  but  the  results 
are  more  certain  than  to  go  about  it  haphazardly.  All  the  data 
so  obtained  should  be  classified  and  arranged  for  ready  refer- 
ence, so  that  it  will  be  immediately  available  when  wanted,  as 
it  will  be  in  the  future. 

Sec.  242.  The  listing  card  shown  in  Form  No.  118  has  both 
space  for  description  and  agreement  as  to  commission  on  one 
side  of  the  card.  Forms  Nos.  117  and  120  show  a  card  with 
space  for  description  on  one  side  and  agreement  for  commission 
on  the  obverse,  with  space  for  confirming  the  listings.  Where 
values  are  changing  it  is  necessary  to  confirm  and  correct  the 
listings  every  month  or  two.  If  the  agent  wishes  to  engage  gen- 
erally in  sales  and  exchanges  beyond  the  limits  of  his  immediate 
vicinity,  the  forms  given  in  Nos.  104  and  107  are  well  adapted 
to  listing  properties  for  this  purpose. 

Sec.  243.  A  broker  to  be  successful  should  list  property 
in  the  section  in  which  property  is  selling  and,  whenever  pos- 
sible, obtain  an  exclusive  agency  contract.  In  large  cities  the 
areas  in  which  real  estate  is  being  actively  transferred  are  con- 
stantly changing,  and  it  is  part  of  the  duty  of  the  agent  to  get 
advance  information  of  these  movements  in  real  estate  and  then 
list  as  much  property  as  possible  in  that  immediate  section. 

Sec.  244.  An  agent  should  write  to  all  parties  who  adver- 
tise their  own  property,  and  tell  them  that  he  has  exceptional 
facilities  for  handling  that  class  of  property,  and  that  he  is  con- 


22  REAL  ESTATE  SELF-TAUGHT. 

stantly  having  inquiries  therefor;  also  that  having  recently  en- 
gaged in  the  real  estate  business,  he  is  putting  more  vigor  and 
energy  into  the  business  than  some  of  the  agents  who  have 
been  longer  in  the  business  and  have  fallen  into  the  ruts  of  the 
trade. 

Sec.  245.  Good  returns  are  generally  obtained  by  the  use 
of  the  "postal  card  with  paid  reply,"  which  provides  for  the 
recipient  detaching  the  annexed  card  in  reply.  A  short  note, 
something  like  the  following,  will  generally  bring  the  desired 
information:  "In  replying,  please  use  attached  card,  and  state 

your  lowest  cash  price  for  your  premises  at  No street,  as 

I  am  confident  that  I  can  dispose  of  this  property  immediately 
if  the  price  is  right.  Also,  please  be  kind  enough  to  list  any 
other  property  you  may  have." 

Sec.  246.  There  is  more  real  estate  advertised  as  a  rule  in 
the  Sunday  newspapers  in  large  cities  than  on  any  other  day  of 
the  week,  and  the  agent  should  answer  these  advertisements 
promptly  every  Monday  morning.  If  the  advertiser  gives  a  box 
in  some  newspaper  office,  the  reply  should  be  sent  there  very 
early  in  the  day. 

Sec.  247.  In  approaching  a  real  estate  owner  with  a  view 
to  listing  his  property,  the  broker  should  present  his  business  card 
and  set  forth  the  nature  of  his  errand  in  a  businesslike  way.  If 
the  owner  is  a  business  man,  he  can  be  dealt  with  readily.  If  not 
accustomed  to  business,  it  will  sometimes  be  necessary  for  the 
agent  to  first  gain  the  owner's  confidence. 

Sec.  248.  At  the  time  of  listing  property,  it  is  important  that 
the  agent  have  a  clear  and  distinct  understanding  with  the  owner 
in  regard  to  commission.  The  commission  is  the  object  for 
which  the  agent  is  working.  Most  owners  understand  what 
"regular  commission"  means.  The  list  of  commissions  given  at 
the  close  of  this  lesson  is  that  in  effect  by  the  Los  Angeles  Realty 
Board,  and  is  a  safe  and  reasonable  one  to  follow,  unless  the 
customary  commission  where  the  agent  is  located  is  higher,  in 


REAL  ESTATE  SELF-TAUGHT  23 

which  case  he  should  follow  the  custom.  If  there  is  no  established 
commission  in  the  locality  where  the  agent  is  acting,  it  would  be 
well  for  him  to  have  a  list  of  his  commissions  printed  on  the 
back  of  his  business  cards.  Where  two  agents  work  together  to 
close  a  deal,  one  furnishing  the  property  and  the  other  the  cus- 
tomer, it  is  usual  to  divide  the  commission  equally  between  them, 
and  sometimes  it  is  expedient  to  allow  a  part  of  the  commission 
to  a  person,  not  in  the  real  estate  business,  who  assists  in  effecting 
a  sale.  It  is  necessary,  in  some  cases,  in  order  to  effect  a  sale,  to 
allow  the  purchaser  a  rebate  of  say  one-half  of  the  commission. 

Sec.  249.  The  following  relates  to  the  size  of  the  type, 
measurement  of  advertising  space,  and  classification  of  the  ad- 
vertisements : 

(a)  All  type  is  made  on  the  point  system.    This  is  an  arbi- 
trary system  of  measurement,  and  there  are  72  points  to  an  inch  j 
therefore  a  six-point  type  means  that  there  are  twelve  lines  of 
the  type  of  that  size  in  an  inch.     In  addition  to  this  system  of 
measurement,  the  smaller  sizes  of  type,  such  as  are  commonly 
used  for  reading  matter,  are  named:     Agate  measures  fourteen 
lines  to  the  inch;  Brevier  is  eight-point;  Long  Primer  is  ten- 
point;  Pica  is  twelve-point,  or  one-sixth  of  an  inch. 

(b)  All  newspapers  and  periodical  space  is  based  on  a  price 
of  so  much  per  inch,  but  where  the  circulation  is  large  the  rate 
generally  quoted  is  the  price  per  line,  or  per  word.    Unless  other- 
wise specified,  price  is  based  on  one  agate  line  space,  i.  e.,  one- 
fourteenth  of  an  inch,  without  any  regard  to  the  size  of  the  type 
which  is  used  in  the  space.     For  example,  in  an  advertisement 
occupying  ten  lines  of  space,  four  or  five  lines  might  be  occupied 
with  a  heavy  display  type. 

(c)  The  measure  of  space  above  referred  to  means  one  line 
across  the  column.    The  ordinary  width  of  column  among  news- 
papers is  thirteen  ems,  which  is  two  and  one-sixth  inches.     In 
the  principal  magazines,  the  column  measures  two  and  three- 
fourths  inches. 


24  R£AL  ESTATE  SELF-TAUGHT. 

(d)  The  newspaper  column  varies  in  length,  but  among  the 
larger  dailies  is  in  the  vicinity  of  twenty-one  inches. 

(e)  The  most  common  size  of  the  magazine  page  is  eight 
by  five  and  one-half  inches.     This  makes  the  ordinary  magazine 
quarter-page  measure  four  by  two  and  three-fourths  inches. 

(/)  Display  advertisements  are  placed  among  the  ordinary 
advertisements  in  the  publication.  i 

(g)  It  is  customary  to  use  some  of  the  type  in  large  sizes 
to  attract  attention,  with  or  without  illustrations.  It  is  not  neces- 
sary, however,  to  use  display  type,  even  where  one  is  buying 
display  space.  But  an  advertisement  set  in  the  shape  of  reading 
matter  and  grouped  among  display  advertisements  would  be  out 
of  place,  and  in  most  cases  not  particularly  effective. 

(h)  Classified  advertisements  are  those  which  are  set  with- 
out display  type  and  are  grouped  under  proper  headings  in  some 
special  section  of  the  publication.  They  are  carried  by  all  daily 
publications,  most  of  the  large  weeklies  and  trade  papers,  and 
some  of  the  magazines.  The  rate  is  generally  less  than  for  display 
space  in  the  same  publication. 

.(*)  "Readers"  are  set  in  different  types  at  varying  prices, 
but  are  always  without  display  of  any  sort  except  that  a  heading 
is  generally  allowed  in  a  black-faced  type  of  small  size.  The 
price  varies  according  to  the  position  in  the  paper,  being  highest 
on  the  editorial  page,  if  allowed  there  at  all;  they  also  cost  more 
if  set  in  the  reading-matter  of  the  paper.  In  a  general  way,  the 
rate  is  two  or  three  times  as  much  per  line  as  for  display  space 
in  the  same  publication.  Reader  advertising  is  effective  where 
one  has  a  high-class  subdivision.  A  reader  to  the  effect  that  Mr. 
So-and-So,  a  social  leader,  has  purchased  a  lot  in  the  subdivision 
and  will  erect  a  handsome  residence,  will  induce  others  in  his  set 
to  do  likewise. 

Sec.  250.  An  advertisement  in  a  newspaper  under  "Real 
Estate  Wanted,"  something  like  the  following,  will  induce  prop- 
erty owners  to  bring  in  their  property  to  be  listed : 


ESTATE:  SELF-TAUGHT.  25 

"List  your  real  estate  of  all  kinds  with  me;  I  am  in  touch 
with  capital  and  with  parties  desiring  to  exchange,  and  can  make 
quick  and  satisfactory  sales  and  exchanges;"  or  "I  am  having 
inquiries  every  day  for  modern  homes  of  all  sizes.  Yours  may 
be  just  the  place  that  will  suit.  Call  to-day,  or  telephone,  and 
list  your  property.  My  watchword  is :  'No  misrepresentation'  " ; 
or  "Wanted — We  can  sell  or  exchange  your  property  or  business 
no  matter  where  located;  our  terms  for  closing  deals  are  very 
low ;  it  will  pay  you  to  investigate  our  plans" ;  or,  "We  handle 
properties ;  nothing  is  too  large  or  too  small  for  us.  We  have  a 
fine  list  of  lots,  homes,  investments,  income  properties,  timber 
lands,  berry  land ;  in  fact,  anything  in  the  real  estate  line.  Come 
in  and  see  us  if  you  want  a  good  buy.  List  your  property  with 
us  for  quick  sales.  We  have  customers  for  choice  building  sites" ; 
or,  "List  your  property  with  us.  From  our  listings  received  since 
Sunday  last,  we  have  made  a  large  number  of  deals  that  again 
has  demonstrated  our  ability  to  Mo  things' ;  several  of  the  bargains 
were  'snapped  up'  before  the  ink  was  hardly  dry  on  our  books, 
and  we  are  looking  for  more  opportunities  to  make  money  for  our 
clients.  In  order  to  do  so,  we  want  your  property,  not  to  fill  our 
books  with  a  larger  list,  but  to  supply  our  customers,  who  are 
legion,  and  are  waiting  with  the  money  and  an  eagerness  to  pur- 
chase. Call  at  our  splendidly  equipped  offices,  where  we  have 
the  system,  the  ability  and  determination  to  be  the  leaders  in  our 
profession." 

Sec.  251.  P.  T.  Barnum,  one  of  the  most  renowned  adver- 
tisers of  his  day,  gives  the  following  suggestions  in  regard  to  ad- 
vertising: Don't  hide  your  light  under  a  bushel;  advertise  your 
business  thoroughly  and  efficiently  in  some  shape  or  other  and  it 
will  arrest  public  attention.  There  may  be  some  business  or  occu- 
pation which  does  not  require  advertising,  but  I  cannot  well 
conceive  what  it  is.  Homeopathic  doses  of  advertising  will  not 
pay;  they  make  the  patient  sick  and  effect  nothing;  administer 
liberally  and  the  cure  will  be  sure  and  permanent.  Some  say  they 


26  REAL  ESTATE  SELF-TAUGHT. 

cannot  afford  to  advertise;  they  mistake;  they  cannot  afford  not 
to  advertise.  Everybody  reads  the  newspapers,  and  these  are 
the  cheapest  and  best  means  of  speaking  to  the  public.  Put  on 
the  appearance  of  business  and  the  reality  will  generally  follow. 
While  you  are  dealing  with  one  set  of  customers,  your  advertise- 
ment is  being  read  by  thousands  of  others. 

Sec.  252.  Success  and  failure  are  often  results  of  proper  and 
improper  follow-up  systems.  Every  name  and  address  received 
through  the  medium  of  an  advertisement  has  a  possible  cash  value, 
and  as  such  should  be  carefully  preserved  and  judiciously  fol- 
lowed. The  excessive  use  of  large  quantities  of  printed  matter 
in  follow-up  systems  is  wrong.  Short,  plain,  self-explanatory 
letters  will  do  in  the  majority  of  cases.  The  smaller  the  quantity 
of  literature,  the  greater  its  chances  of  being  read.  A  New  York 
concern  never  uses  one  cent  postage,  but  sends  out  all  its  literature 
under  two  cent  stamps.  By  going  to  the  expense  of  two  cent 
stamps,  good  stationery,  return  envelopes,  etc.,  they  find  they 
stand  better  chances  of  receiving  returns  than  if  one-cent  stamps 
and  cheap  paper  are  used.  After  the  name  and  address  of  the 
inquirer  are  secured,  efficient  follow-up  work  is  more  important 
than  advertising. 

Sec.  253.    A  real  estate  advertiser  writes : 

(a)  A  sign  over  your  door  that  you  sell  Real  Estate  is  not 
going  to  bring  a  rush  of  prospective  customers  into  your  office. 
Neither  will  your  announcement  that  you  have  "all  kinds  of  farms 
to  sell,"  printed  in  a  newspaper,  make  people  write  you  for  par- 
ticulars, because  such  an  announcement  makes  no  impression. 
Unless  you  can  interest  and  impress  people  sufficiently  to  make 
them  write  you,  no  results  will  be  obtained,  although  your  an- 
nouncement may  be  read  by  a  great  many  persons. 

(b)  In  order  to  interest,  one  must  be  specific.     Instead  of 
offering  all  kinds  of  farms,  select  one  and  describe  it  fully.  Better 
get  ten  men  worked  up  to  the  point  of  buying  than  try  to  appeal 


ESTATE  SELF-TAUGHT.  27 

to  a  thousand  and  fail  to  set  them  thinking.    Say  something  that 
will  appeal  to  somebody. 

(c)  If  you  offer  a  farm  that  must  be  sold  because  the  owner 
died,  you  would  strongly  appeal  to  those  that  are  looking  for  a 
real  snap.    If  your  farm  has  a  nice,  bearing  orchard,  that  would 
catch  others.     If  your  farm  borders  on  a  lake,  that  would  be  a 
great  attraction.    If  there  is  some  timber  on  the  place,  that  might 
turn  the  scale.    If  your  farm  raised  a  magnificent  crop  last  year, 
mention  it  and  put  heart  into  the  timid  and  doubting. 

(d)  If  you  have  a  $5,000  farm  to  sell,  it  is  time  and  money 
wasted  to  correspond  with  a  $500  man ;  therefore,  state  the  price 
or  give  an  idea  of  what  the  farm  is  worth. 

(e)  Give  the  location.    The  name  of  the  county  is  good,  if 
the  ad.  is  intended  for  readers  in  the  same  State.     Otherwise, 
better  give  the  part  of  the  State  or  the  valley,  etc.,  where  the  farm 
is  located.    Nebraskans  know  that  Lancaster  county,  the  country 
around  Lincoln,  is  situated  in  the  southeastern  part  of  Nebraska, 
the  "South  Platte  Country,"  where  land  is  worth  as  high  as  $125 
an  acre ;  they  also  know  that  some  400  miles  farther  west,  in  the 
west  end  of  the  State,  in  the  "Sand  Hill  district,"  you  can  get  a 
free  Government  homestead  of  640  acres,  under  the  new  law, 
which  was  passed  because  a  man  cannot  make  a  living  on  160 
acres  of  Sand  Hills.     But  readers  in  other  States  do  not  know 
whether  Lancaster  county  is  in  or  near  the  Sand  Hills.     They 
must  be  interested  before  they  will  look  it  up  on  the  map. 

(b)  Sometimes  a  few  words  may  be  necessary  to  counteract 
unfavorable  notoriety  which  some  drought,  flood,  cyclone,  or 
earthquake  may  have  given  your  locality.  Thus,  a  $1,000  Kansas 
farm,  even  if  offered  at  $500,  would  not  appeal  to  the  man  whose 
whole  knowledge  of  Kansas  is  restricted  to  the  drought  region, 
unless  you  make  it  plain  in  which  part  of  the  State  your  farm  is — 
that  it  is  in  the  rainy  district,  where  droughts  are  unknown. 

(g)  If  your  farm  is  well  improved,  has  a  good  house,  is  in 
a  good  neighborhood,  close  to  a  good  town,  convenient  to  school 


28  REAI,  ESTATE  SELF-TAUGHT. 

and  church,  this  should,  of  course,  be  gone  into  fully.  In  short, 
do  not  fail  to  put  in  all  the  information  that  would  interest,  and 
favorably  impress,  the  prospective  buyer. 

(h)  In  offering  wild  lands,  give  enough  of  a  description  of 
the  land  and  of  the  natural  advantages  and  prospects,  to  get  the 
reader  interested.  Do  not  overdo  things.  Do  not  use  too  many 
big  words.  Avoid  glittering  generalities.  Appear  to  be  frank 
and  humanize  your  talk  as  much  as  possible.  Tell  of  the  experi- 
ences of  settlers,  how  they  started,  what  they  have  accomplished, 
what  progress  has  been  made  in  the  way  of  public  improvements 
in  the  last  year  or  so.  Wind  up  with  an  offer  to  send  a  map,  a 
pamphlet  or  full  description  of  the  land.  If  your  advertising  talk 
has  the  proper  ring,  the  reader  will  be  eager  to  learn  more  about 
your  land. 

(i)  It  is  better  to  run  a  larger  advertisement,  giving  the  right 
kind  of  information,  a  few  times,  than  to  run  continually  a  small 
ad.  which  says  nothing. 

(/)  "Blind  ads."  like  the  following  are  sometimes  used  by 
real  estate  men: 

FARM  WANTED. 

Will  pay  fair  price  for  good  sized  farm  in  good  section,  soil  must 
be  first  class.  Will  take  large  or  small  place  if  it  suits.  Will  bar- 
gain for  machinery  and  stock.  Give  description  and  lowest  price. 
I  want  the  best  I  can  get  for  my  money.  I  want  possession  in 
May  or  October.  Will  deal  with  owners  only,  real  estate  men 
need  not  answer.  Address 

Box  980,  Minneapolis,  Minnesota. 

Sec.  254.  The  student  will  do  well  to  give  some  study  to  the 
suggestions  for  advertisements  given  in  Forms  Nos.  127  to  136, 
inclusive. 


REAL,  ESTATE  SELF-TAUGHT.  29 

Sec.  255.     The  following  is  the  schedule  of  commissions  ap- 
proved by  the  Los  Angeles  Realty  Board: 

SCHEDULE  OF  COMMISSIONS. 

ON  REAL  ESTATE  SALES. 

(a)     COUNTRY  PROPERTY: 

On  all  property  situated  outside  the  city  limits  of  the  city  of 
Los  Angeles  5  per  cent  on  the  purchase  price. 

(&)     CITY  PROPERTY: 

On  all  property  located  within  the  city  limits  of  the  city  of 
Los  Angeles  5  per  cent  on  the  first  $1,000  and  2^2  per  cent 
on  the  balance  of  the  purchase  price. 

ON  REAL  ESTATE  EXCHANGES. 

2^2  per  cent  on  the  estimated  value  of  the  property  [contributed 
by  each  party  to  be]  exchanged,  to  be  paid  by  each  party  to 
the  exchange. 

RENTAL    CHARGES. 

(a)  For  renting  unfurnished  houses,  stores,  and  other  unfur- 
nished property,  except  as  herein  specifically  mentioned,  from 
month  to  month,  10  per  cent  of  the  first  month's  rent. 

(b)  For  renting  furnished  houses  and  other  furnished  property 
1 5  per  cent  of  the  first  month's  rent. 

(c)  FOR  LEASING  ALL  CLASSES  OF  PROPERTY: 

2.1/2  per  cent  on  the  amount  of  the  First  Year's  Rent. 
2      per  cent  on  the  amount  of  the  Second  Year's  Rent. 
1^2  per  cent  on  the  amount  of  the  Third  Year's  Rent. 
I      per  cent  on  the  amount  of  the  Fourth  Year's  Rent. 
Y-2  per  cent  on  the  amount  of  the  Fifth  Year's  Rent. 
On  leases  for  a  term  exceeding  five  (5)  years  y2  per  cent  of 
the  rental  for  the  remainder  of  lease. 

For  assigning  a  lease  at  request  of  the  tenant,  $5.00,  to  be 
paid  by  tenant. 


30  REAL  ESTATE  SELF-TAUGHT. 

Making  inventory  of  contents  of  furnished  houses  and  flats, 

$5.00  up. 

Checking  inventory,  $2.50  to  $5.00  each  checking. 

All  Charges  to  be  Deducted  from  the  First  Money  Received, 

and  to  include  drawing  of  lease. 

COLLECTION  OF  RENTS  AND  GENERAL  MANAGEMENT  OF  PROPERTY. 

On  business  property,  2^  per  cent  of  rents  collected. 
On  other  classes  of  property,  5  per  cent  of  rents  collected. 
Care  when  vacant :    Unfurnished  houses,  $i  a  month. 

Unfurnished  flats,  50  cents  a  month  (each  flat). 

Furnished  flats,  $i  up  a  month. 

Business  property:     Inside  retail  district,  no  charge;  others, 

$i  a  month  each  store  or  apartment. 

DRAWING  DEEDS,  MORTGAGES,  ETC. 

For  drawing  deeds,  mortgages  and  other  legal  papers  incident  to 
real  estate  transactions,  including  notarial  acknowledgment, 
a  charge  of  $1.50  to  be  made. 


REAL  ESTATE  SELF-TAUGHT.  3! 


LESSON   VI. 
OF    SELLING    AND    EXCHANGING. 

Section  256.  A  real  estate  broker  should  always  keep  in  mind 
the  fact  that  he  must  be  pre-eminently  a  salesman.  Commercial 
travelers  and  salesmen  in  other  lines  take  kindly  to  real  estate 
salesmanship.  A  salesman  must  have  a  meritorious  article  to  sell, 
must  seek  his  customer,  must  introduce  the  subject  of  the  sale,  and 
evince  a  willingness  to  serve  his  customer  and  aid  him  in  making 
a  desirable  purchase  or  investment. 

Sec.  257.  A  successful  salesman  must  be  honest.  He  must 
have  a  character  that  will  inspire  confidence  and  must  be  pleasant 
and  agreeable  as  well  as  capable.  He  must  create  a  congenial 
atmosphere  about  him.  Then  he  must  know  his  goods.  He  must 
satisfy  himself  that  he  is  selling  the  best  goods  at  the  lowest  prices. 
He  must  know  the  reason  why  they  are  the  best,  and  he  must 
present  these  honest,  convincing  thoughts  in  a  way  that  will  carry 
conviction  to  the  hearer.  The  most  successful  salesman  is  he  who 
understands  human  nature  and  who  can  set  forth  the  merits  of 
what  he  has  for  sale  in  a  clear  and  convincing  manner.  It  is  un- 
necessary to  state  that  every  salesman  should  have  system  in  his 
work,  and  the  system  should  be  his  own.  One  person  cannot  adapt 
in  its  entirety  a  system  devised  by  another,  as  there  are  no  two 
persons  who  think,  reason  and  act  precisely  alike.  A  broker 
should  think  out  his  own  system  and  then  live  up  to  it.  He  should 
have  certain  office  hours,  be  at  his  office  within  those  hours,  leave 
someone  in  charge  when  he  is  out,  or  leave  a  notice  stating  when 
he  will  return ;  have  a  method  of  making  notations  on  a  calendar 
pad  or  otherwise  as  to  future  work  and  appointments ;  and  carry 
a  memorandum  book  wherein  he  can  jot  down  things  to  be  done, 
together  with  names  and  telephone  numbers  of  customers. 


32  REAL  ESTATE  SELF-TAUGHT. 

Sec.  258.  The  soliciting  of  life  insurance  is  one  of  the  most 
delicate  and  difficult  duties  of  a  salesman.  A  great  deal  of  thought 
has  been  given  to  the  subject,  and  the  following  is  an  adaptation 
to  the  real  estate  business  of  the  pithy  remarks  of  expert  life  in- 
surance solicitors:  "You  were  afraid  of  your  man — that  he 
might  'turn  you  down.' — He  bluffed  you  at  the  critical  moment. 
You  lost  your  moral  courage  at  the  crisis.  You  left  your  man 
five  minutes  too  soon.  You  argued  with  him  about  other  real 
estate  dealers  and  their  properties.  You  did  not  unfold  your  con- 
tract of  sale  and  commence  writing  when  he  was  on  the  fence. 
You  failed  to  show  a  confident  and  fearless  smile  when  he  was 
gruff  and  severe,  and  you  did  not  realize  that  a  gruff  man  often 
has  the  kindest  heart.  You  tried  to  talk  to  him  in  the  presence 
of  others  or  while  he  was  busy  or  preoccupied.  You  did  not  re* 
quest  a  brief  and  private  interview.  A  private  interview  has  the 
effect  of  increasing  your  customer's  importance  in  kis  own  esti- 
mation. You  did  not  study  the  favorable  conditions  of  your  prop- 
erty as  compared  with  other  similar  properties  and  you  did  not 
emphasize  these  points.  You  waited  too  long  and  the  other  fellow 
got  there  first.  He  told  you  not  to  call  again  for  two  weeks,  and 
you  didn't.  You  wrote  him  letters  instead  of  calling.  You  spoke 
disparagingly  of  rival  brokers  and  lost  your  customer's  respect. 
You  became  temporarily  interested  in  other  customers  or  prop- 
erties and  neglected  this  particular  customer.  You  expected  your 
customer  to  keep  you  in  mind  and  also  his  promise  to  let  you 
know  when  to  call  again,  instead  of  dropping  in  on  him  unexpect- 
edly. You  did  not  give  him  a  straight-from-the-shoulder  talk  in  a 
confident  and  bouyant  spirit.  You  did  not  work  and  think  hard 
enough,  nor  exercise  sufficient  foresight  in  anticipating  and  tact- 
fully combatting  opposing  arguments." 

Sec.  259.  In  selling  property,  both  principal  and  agent  should 
avoid  artifices  calculated  to  mislead.  As  is  well  known,  fraud 
vitiates  all  contracts.  Any  misrepresentation  of  a  material  fact 
on  which  the  other  party  had  a  right  to  rely,  and  in  respect  to 


ESTATE  SELF-TAUGHT  33 

which  he  was  deceived  to  his  injury,  is  fraud.  Fraud  has  been 
defined  to  be  any  kind  of  artifice  used  by  one  person  in  deceiving 
another,  but  what  constitutes  fraud  depends  upon  circumstances. 
Fraud  must  be  proved  and  will  not  be  presumed.  Every  person 
relies  at  his  peril  on  the  opinions  of  others  when  he  has  an  equal 
opportunity  of  confirming  or  exercising  his  own  judgment. 
Puffing  and  extravagant  commendation  of  property  is,  therefore, 
allowable,  and  does  not  amount  to  fraud  which  will  avoid  a  con- 
tract. The  buyer  should  not  trust  to  the  assertions  of  the  seller 
or  agent  as  to  the  market  or  real  value  of  the  property.  The  prin- 
cipal or  agent  should  not  suppress  material  facts  nor  conceal  latent 
defects  regarding  the  property  to  be  sold  where  both  parties  have 
not  equal  access  to  means  of  information.  To  do  so  will  be  deemed 
to  be  fraud.  The  difference  between  a  false  statement  in  the  mat- 
ter of  fact  and  a  like  falsehood  in  the  matter  of  opinion  has  been 
illustrated  thus :  IT  I,  the  owner  of  a  house,  affirm  that  it  will  sell 
or  let  for  a  certain  sum  per  annum  when  in  fact  no  such  sum  can 
be  obtained,  such  statement  is  in  its  nature  a  matter  of  judgment 
or  an  estimate  and  will  be  understood  that  the  party  so  considered 
it.  But  if  I  falsely  affirm  that  the  house  brings  $150  per  annum 
when  in  fact  it  is  let  for  $100  per  annum,  such  affirmation  is  a 
fraud,  because  I  know  what  fact  is,  although  the  buyer,  even  if 
he  should  inquire  of  the  tenant,  might  not  be  able  to  ascertain  the 
fact,  as  the  tenant  might  not  give  him  any  information  or  give  him 
false  information. 

Sec.  260.  The  seller  is  placed  in  a  somewhat  different  position, 
as  if  he  allows  himself  to  be  beaten  down  in  price  by  any  false  in- 
ducements or  statements  on  the  part  of  the  buyer  or  agent,  he  can- 
not recover  the  difference  between  the  price  he  first  asked  and 
that  which  he  afterwards  consented  to  take  because  of  such  false 
representations. 

Sec.  261.  If  a  party  discovers  that  fraud  has  been  practiced 
upon  him  and  he  does  not  intend  to  stand  by  the  bargain  he  should 


34  REAL  ESTATE  SELF-TAUGHT 

declare  the  deal  off  and  restore,  or  offer  to  restore,  anything  he  may 
have  received  under  the  contract. 

Sec.  262.  If  the  agent  should  at  any  time  have  in  his  pos- 
session funds  belonging  to  his  principal,  he  should  be  careful  to 
keep  such  funds  separate  from  his  own  funds,  as,  if  the  two  could 
not  be  distinguished,  the  principal  might  claim  the  whole.  If 
deposited  in  a  bank,  the  agent  should  keep  two  accounts,  one  for 
the  funds  of  his  principal  and  one  for  his  own  funds,  and  make  all 
payments  by  means  of  checks,  which,  in  the  absence  of  receipts  or 
other  written  proof  of  payment,  might  serve  as  vouchers. 

Sec.  263.  An  agent  should  always  keep  his  principal  well  in- 
formed as  to  the  progress  of  negotiations  and  as  to  the  condition 
of  business  under  his  charge. 

Sec.  264.  In  opening  negotiations  for  a  bargain  between  par- 
ties, a  broker  should  invariably  communicate  sufficient  information 
to  them  to  identify  the  transaction  so  that  he  may  be  entitled  to 
his  commission. 

Sec.  265.  A  person  undertaking  to  act  as  a  broker  impliedly 
warrants  that  he  possesses  such  knowledge  and  skill  as,  in  ordinary 
cases,  would  be  adequate  for  the  purpose. 

Sec.  266.  A  portion  of  this  lesson  will  consist  of  a  few  "Don'ts 
for  Real  Estate  Brokers." 

(a)  Don't  induce  your  client  to  buy  an  undesirable  property 
for  the  sake  of  the  commission  you  might  make. 

(b)  Don't  buy  property  yourself  from  your  client,  knowing 
you  have  it  already  resold  to  another  at  an  advance ;  you  probably 
made  a  commission  in  buying  the  property  for  your  client,  and 
you  should  sell  it  for  him  to  the  best  advantage  and  be  satisfied 
with  the  second  commission. 

(c)  Don't  try  to  coerce  buyers,   after  you  have  shown  a 
property,  by  insistent  suggestions  to  buy,  as  they  may  think  you 
too  demonstrative  and  avoid  you. 

(d)  Don't  give  your  estimate  offhand  as  to  the  value  of  a 
certain  piece  of  property  when  you  don't  know  what  it  is  actually 


ESTATE;  SELF-TAUGHT  35 

worth.  You  might  lose  your  reputation  for  good  judgment. 
Simply  say  you  don't  know  what  it  is  worth  now,  but  will  investi- 
gate and  report. 

(e)  Don't  attempt  to  crowd  sellers  into  making  a  sale.  In- 
stead of  doing  so,  use  arguments  that  will  appeal  to  them,  as,  that 
the  time  to  sell  is  when  one  has  a  buyer,  and  that  there  are  other 
properties  on  the  market,  as  good  or  better,  which  may  be  brought 
to  the  attention  of  the  proposed  buyer  if  the  sale  is  not  made. 

(/)  Don't,  if  possible,  let  your  buyer  have  an  opportunity  to 
think  about  the  deal  over  night ;  if  the  buyer  has  time  to  consider 
over  night,  he  is  pretty  certain  to  decide  not  to  buy,  as  human 
nature  is  so  constituted  that  fear  is  predominant  in  the  night, 
whereas  hope  is  quickened  by  the  light  and  sunshine  of  the  day. 

(g)  Don't  take  sides  with  either  party  when  both  are  present, 
closing  up  a  deal ;  let  them  adjust  any  differences  that  may  arise, 
and,  by  a  tactful,  diplomatic  word  at  the  right  time  bring  the 
matter  to  a  friendly  close. 

(/&)  Don't  forget  that  every  buyer  will  some  day  buy,  and 
every  seller  will  some  day  sell ;  so  work  a  "follow-up"  system  on 
each  class,  offering  new  properties  to  the  buyers  and  soliciting  new 
properties  from  the  sellers.  Keep  separate  lists  of  both  buyers 
and  sellers,  with  brief  notations,  if  need  be,  to  indicate  their  wants. 

(i)  Don't  forget  to  remain  with  your  customer,  when  you 
take  him  out  to  show  him  property,  pass  his  objections  by  unno- 
ticed or  courteously  dismiss  them;  and  don't  let  your  customer 
talk  to  neighbors  or  tenants,  except  in  your  presence. 

(/)  Don't  omit  making  suggestions  to  your  customer  along 
the  lines  of  the  comfort,  contentment  and  pecuniary  gain,  which, 
in  your  opinion,  will  be  his  if  he  makes  the  purchase  in  question ; 
and  by  all  means,  don't  neglect  to  first  place  yourself  in  a  buoyant 
and  confident  frame  of  mind,  as  your  sanguine  utterances  will  then 
have  the  more  compelling  effect  upon  your  customer. 

(&)  Don't  manifest  any  impatience  if  the  buyer  desires,  be- 
fore purchasing,  to  have  the  property  examined  by  a  builder  or 


36  REAL  ESTATE  SELF-TAUGHT 

architect  to  determine  what  the  building  could  be  erected  for  and 
its  present  value.  Arrange  for  the  examination  and  impress  upon 
the  buyer  that  you  are  looking  after  his  interests. 

(/)  Don't  fail  to  get  a  deposit  from  the  buyer  as  speedily  as 
possible,  as  this  is  what  you  are  working  for,  and  you  are  never 
sure  of  a  sale  until  you  have  received  a  deposit,  and  not  always 
then,  as  the  deposit  may  be  forfeited  by  the  buyer. 

(m)  Don't  contradict  your  customer,  unless  absolutely  neces- 
sary to  do  so  to  correct  a  serious  misapprehension,  and  if  he  is 
pleased  with  a  property  that  you  don't  think  well  of,  acquiesce  in 
his  judgment. 

(»)  Don't  attempt  to  sell  or  list  too  many  properties  at  a 
time,  if  you  expect  to  do  all  the  work  yourself.  It  is  better  to  con- 
fine your  efforts  to  a  few  first-class  properties  that  are  real  bar- 
gains until  you  dispose  of  them,  rather  than  to  scatter  your  ener- 
gies over  a  multitude  of  pieces.  After  you  have  gained  a  reputa- 
tion for  making  sales,  people  will  come  to  you  without  solicitation 
and  insist  on  your  handling  their  property. 

(0)  Don't  allow  the  owner  to  offer  the  property  at  one  price 
while  you  quote  it  at  another  and  higher  price,  the  difference  being 
your  commission.  Insist  on  his  quoting  the  price  you  quote,  with 
understanding  that  he  may  say  to  an  intending  purchaser  who  has 
come  voluntarily  to  him  without  having  obtained  information  as  to 
the  property  by  or  through  you,  that,  inasmuch  as  he  would  have 
to  pay  a  certain  amount  as  commission  in  case  the  sale  were  made 
through  a  broker,  he,  the  owner,  will  deduct  that  sum  from  the 
purchase  price,  provided  the  proposed  buyer  will  at  once  close  the 
deal.  The  practice  of  having  two  prices  on  one  piece  of  property 
at  the  same  time  always  leads  to  trouble  and  complications.  A 
buyer,  if  he  ascertains  that  the  owner  has  a  lower  price,  concludes 
that  the  broker  has  been  trying  to  extort  money  from  him,  and 
feel  aggrieved,  and  the  reputation  and  business  of  the  broker  is 
needlessly  injured. 


ESTATE  SELF-TAUGHT  37 

(p)  Don't  forget  to  obtain  a  deposit  from  a  purchaser  who 
offers  less  for  a  certain  property  than  the  owner  is  asking  for  it, 
as,  by  obtaining  the  deposit,  together  with  say  ten  days  in  which 
to  endeavor  to  close  a  deal,  you  prevent  the  purchaser  from  buying 
anything  else,  and  in  many  cases  by  diplomatically  securing  con- 
cessions from  each  party,  you  will  succeed  in  effecting  a  sale  of 
the  property  desired,  or  of  some  other  property. 

Sec.  267.  Real  estate  brokers  are  sometimes  subjected  to  an- 
noyance and  not  infrequently  to  loss  of  commissions  by  reason  of 
inquiries  being  made  about  properties  by  bargain-hunting  pur- 
chasers or  emissaries  from  rival  brokers.  To  guard  against  this, 
the  author  suggests  a  form  like  No.  122,  to  be  used  by  the  broker 
at  his  discretion  when  called  upon  for  a  list  of  properties.  These 
lists  can  be  bound  in  pads  or  in  books  and  a  carbon  copy  retained 
of  the  list  as  furnished.  The  moral  effect  on  the  inquirer  would 
no  doubt  be  good,  and  the  broker  would  obtain  the  name  and  ad- 
dress of  the  inquirer  which  he  oftentimes  fails  to  do. 

Sec.  268.  Brokerage  in  stocks  and  bonds  cannot,  as  a  rule,  be 
successfully  done  in  connection  with  real  estate.  The  man  who 
handles  stocks  and  bonds  must  look  well  fed  and  be  well  groomed, 
be  suave  in  address,  and  frequent  clubs  and  hotels  where  the 
wealthy  congregate.  He  must  cultivate  and  exhale  an  optimistic 
view  as  to  financial  matters  and  wear  a  smile  that  won't  come  off. 
His  clients  are  to  be  found  among  retired  business  men,  and  among 
women  and  young  people  who  have  inherited  money,  and  who 
wish  to  place  it  where  they  hope  it  will  be  secure  and  call  for  no 
personal  effort  on  their  part  in  looking  after  it,  and  where  the 
dividends  or  interest  will  be  received  with  undeviating  regularity. 
As  a  rule,  this  class  of  investors  know  very  little  about  the  securi- 
ties in  which  they  invest  beyond  what  is  told  them  by  the  broker, 
and  the  broker  must  act  his  part  with  great  tact  and  probity.  The 
story  of  the  two  brothers,  James  and  John,  illustrates  the  stock 
brokerage  business.  "I  have  some  spare  money,"  said  James, 
"and  I  think  I  will  take  a  little  flyer  in  stocks.  What  do  you  advise 


3  REAL  ESTATE  SELF-TAUGHT 

me  to  buy  ?"  "You  can  do  no  better  than  to  buy  the  Great  Hot- 
airship,  Unlimited,"  said  John.  "Where  can  I  get  that?"  said 
James.  "Oh,  I  can  sell  you  all  you  want,"  quoth  John.  The  real 
estate  broker  is  at  times  forced  of  necessity  to  engage  in  handling 
stocks  and  bonds,  as  the  latter  are  active  and  real  estate  is  quiet. 
This  is  particularly  true  when  business  is  recovering  from  a  period 
of  industrial  depression.  Stocks  then  first  become  active,  be- 
cause new  enterprises  are  organized,  and  the  sale  of  shares  is  car- 
ried on  to  acquire  capital. 

Sec.  269.  "Business  Opportunities,"  or  "Business  Chances"  is 
the  title  generally  given  to  all  sorts  of  business  whereby  men  make 
a  living  by  catering  to  others,  such  as  bakeries,  barber  shops,  drug 
stores,  restaurants,  lodging  houses,  etc.  The  broker  who  makes  a 
specialty  of  business  chances  and  exchanges,  in  order  to  be  suc- 
cessful, must  have  in  his  makeup  something  of  the  "born  trader" 
instinct. 

Sec.  270.  The  "Good  Will"  of  the  business  is  the  expectation 
that  the  customers  under  one  management  will  continue  to  be  cus- 
tomers under  the  next  succeeding  management. 

Sec.  271.  In  transferring  the  title  to  personal  property,  no 
abstracts  of  certificates  of  title  are  obtainable,  as  a  rule,  and  the 
purchaser  must  examine  the  public  records  for  himself  or  have 
some  one  do  so  for  him  who  understands  that  part  of  the  trans- 
action. The  broker  generally  attends  to  this,  for  the  purpose  of 
ascertaining  whether  or  not  the  statement  of  the  seller  in  regard  to 
there  being  any  incumbrancses  on  the  property  is  true.  The  seller 
shuold  have  in  his  possession  a  bill  of  sale  from  the  party  from 
whom  he  purchased,  and  if  he  has  given  a  chattel  mortgage  that 
should  appear  of  record,  and  any  judgments  against  him  would 
also  appear  of  record.  As  to  whether  or  not  the  seller  has  paid  for 
the  goods  he  has,  aside  from  those  acquired  by  the  bill  of  sale,  the 
purchaser  should  require  him  to  produce  receipted  bills  therefor, 
and  if  not  paid,  should  ascertain  from  the  parties  of  whom  he  has 
been  purchasing  that  the  amount  of  the  bills  unpaid  as  given  by 


ESTATE;  SELF-TAUGHT  39 

the  seller  is  correct.  There  may  be  some  consigned  goods,  such 
as  perfumery  or  fountain  pens,  which  are  payable  in  installments 
or  at  a  certain  later  date,  and  this  also  should  be  investigated.  The 
agent  generally  attends  to  these  matters  for  the  parties.  The 
transfer  of  personal  property  is  effected  by  means  of  a  bill  of  sale. 
(See  Form  No.  91.)  A  contract  of  Conditional  sale  is  used  where 
the  seller  wishes  to  retain  the  title  to  a  sewing  machine,  wagon,  or 
other  article  or  articles  which  the  purchaser  can  use  but  cannot 
sell.  (See  Form  No.  92.)  A  law  regulating  the  sales  of  mer- 
chandise in  bulk  has  been  adopted  in  quite  a  number  of  the  states 
in  order  to  protect  wholesalers  as  well  as  the  buyer  and  seller. 

Sec.  272.  In  making  a  contract  of  sale  of  merchandise,  the 
seller  may  agree  not  to  engage  in  the  same  line  of  business,  either 
directly  or  indirectly,  in  the  same  place  within  a  certain  time. 

Sec.  273.  Exchanges  of  both  real  and  personal  property  are 
most  actively  made  when  sales  for  cash  are  slow.  Exchanging 
of  one  species  of  property  for  another,  where  no  money  changes 
hands,  makes  it  somewhat  difficult  for  the  broker  to  collect  his 
commission,  and  he  generally  has  to  take  in  payment  a  promissory 
note,  either  secured  by  mortgage  or  unsecured,  and  keep  after  his 
client  until' the  broker  is  able  to  make  another  deal  and  convert 
some  of  the  property  into  cash. 

Sec.  274.  Money  may  be  made  in  the  rooming-house  busi- 
ness, but,  as  in  every  other  business,  experience  and  good  judg- 
ment are  indispensable  qualifications  to  making  it.  The  general 
impression  prevails,  however,  that  any  one  who  can  raise  the 
price,  can  make  money  running  a  lodging-house.  And  yet  a 
great  many  people  try  it  and  fail.  Considerable  ability  and  a 
good  knowledge  of  human  nature  are  essential  to  the  handling 
of  all  sorts  of  people  under  diverse  circumstances,  and  to  be  con- 
stantly on  the  watch  both  of  roomers  and  of  expenses  is  apt  to 
wear  on  one.  Then,  where  there  are  a  good  many  ladies  and 
children  in  the  house,  jealousies  and  gossip  will  arise  to  annoy  one. 
There  are  persons  who  are  peculiarly  fitted  for  conducting  a 


4O  R&AI,  ESTATE  SELF-TAUGHT 

hotel  or  lodging-house,  and  such  persons  can,  by  buying  run- 
down places  from  inexperienced  and  unwary  investors,  make  the 
business  pay,  especially  if  the  house  be  brightened  up  by  means 
of  paper  and  varnish  and  special  inducements  be  offered  to  guests. 
Having  placed  the  house  on  a  good  paying  basis,  the  owner  is 
then  ready  for  an  exchange  or  a  sale.  The  successful  rooming- 
house  owners  are  chiefly  women,  and  some  of  them  have  become 
wealthy  by  reason  of  remunerative  sales  and  exchanges.  Country 
property  owners  often  wish  to  remove  to  the  city,  either  because 
they  have  become  tired  of  farm  life  or  because  their  grown  chil- 
dren are  occupied  in  the  city,  and  it  is  with  these  that  the  lodging- 
house  owner  makes  desirable  trades.  The  country  owner,  having 
led  an  active  life,  desires  something  in  the  city  whereby  he  can 
be  occupied  and  make  money.  Here  is  where  the  lodging-house 
and  hotel  broker  makes  his  harvest,  and  in  large  cities  some 
brokers  devote  their  entire  time  to  this  branch  of  the  business. 

Sec.  275.  In  disposing  of  business  chances,  the  seller  should 
always  have  a  plausible  reason  to  advance  for  selling  out — sick- 
ness in  the  family,  other  business  requiring  attention,  about  to 
move  to  another  section  of  the  country,  wanting  a  change,  etc. 
Sometimes  the  party  who  holds  a  mortgage  on  the  stock  wants 
his  "change,"  but  of  course  the  broker  need  not  mention  that. 
,  Sec.  275^.  "My  equity"  is  a  phrase  frequently  used  in  con- 
nection with  sales  and  exchanges,  but  not  always  understood.  It 
invariably  has  reference  to  property  which  is  incumbered  by  mort- 
gage or  otherwise.  For  example:  An  owner  values  a  certain 
property  at  $4000 ;  there  is  a  mortgage  on  it  of  $1800 ;  his  "equity," 
therefore,  is  $2200.  In  making  exchanges,  values  are  often  placed 
one-fourth  higher  than  the  owner  would  take  for  cash.  By  means 
of  inflated  values,  each  party  to  an  exchange  hopes  to  gain  an  ad- 
vantage. 


REAL  ESTATE  SELF-TAUGHT  4! 


LESSON  VII. 
OF  OPTIONS,  CONTRACTS   AND  CONVEYANCES. 

In  this  connection  study  first,  Sees.  61  to  79  inclusive,  80  to  92 
inclusive,  and  126,  and  129  to  133  inclusive,  of  the  "Text  Book." 

Section  276.  Whenever  a  broker  is  called  upon  to  formulate 
an  option,  contract,  deed  or  mortgage,  as  he  naturally  will  be  in 
the  course  of  his  business,  he  will  be  expected  to  do  so  with  rea- 
sonable speed  and  correctness.  In  order  to  do  this,  it  will  be  neces- 
sary for  him  to  give  some  study  beforehand  to  the  matter. 

Sec.  277.  The  broker  should  provide  himself  with  the  printed 
legal  blanks  ordinarily  employed  in  making  sales  and  transfers 
in  his  section,  as  these  are  the  blanks  with  which  persons  resident 
in  that  vicinity  are  familiar.  Printed  blanks  do  not  always  fully 
meet  the  requirements  of  the  law  nor  the  intentions  of  the  parties. 
Thus,  the  provision,  usually  to  be  found  in  an  agreement  of  sale, 
that  the  vendor  shall  furnish  a  good  and  sufficient  deed  does  not 
require  him  to  furnish  a  marketable  title.  Should  the  broker  not 
find  printed  blanks  to  meet  his  requirements,  he  is  referred  to  the 
forms  mentioned  in  this  lesson. 

Sec.  278.  It  is  not  the  printed  forms  with  which  the  broker 
will  have  the  most  difficulty,  but  with  forms  for  which  he  has 
had  no  precedent.  It  frequently  happens  that  parties  desire  to 
come  to  an  agreement  immediately  in  regard  to  something  which 
can  be  completed  only  at  a  later  date  when  certain  other  docu- 
ments are  in  readiness  or  certain  other  acts  have  been  performed. 
Forms  Nos.  109,  no  and  in  are  furnished  as  suggestion  along 
this  line. 

Sec.  279.  There  are  not  a  few  persons,  beginners  in  the  real 
estate  business  among  them,  who  do  not  know  what  sort  of  a 
paper  to  use  for  any  particular  purpose  in  connection  with  the 


42  REAL  ESTATE  SELF-TAUGHT 

conveyance  and  transfer  of  real  and  personal  property,  and  the 
following  information  will  be  found  helpful  in  this  regard: 

(a)  SEPARATE    ASSIGNMENTS    are    used    for    the 
transfer  of  the  following  named  several  properties:     Accounts, 
homesteads,  patents,  bonds,  contracts  for  the  sale  of  real  estate, 
copyrights,  judgments  of  courts,  leases,  mortgages  of   either  real 
or  personal  property,  or  of  both  real  and  personal  property.    Any 
instrument,  except  a  deed,  which  has  not  been  put  of  record,  may 
be  transferred  by  the  indorsement  of  the  assignment  on  the  instru- 
ment itself.     Where  the  assignment  is  made  on  an  instrument 
which  has  been  recorded,  or  if  made  on  an  instrument  which  has 
not  been  recorded  but  which  the  law  requires  or  the  interest  of  the 
parties  demand  that  it  shall  be  recorded,  and  where  separate  books 
are  provided  for  each  class  of  instruments,  as  a  "Book  of  Leases" 
for  the  record  of  leases  and  a  "Book  of  Assignments"  for  assign- 
ments, it  is  evident  that  the  instrument  and  the  assignment  in- 
dorsed thereon  would  have  to  go  of  record  in  both  tiooks.     In 
such  a  case,  the  proper  course  is  to  prepare  a  separate  assignment. 
Where  an  instrument  is  not  required  to  be  recorded,  as  is  the 
case  with  policies  of  insurance,  certificates  of  stock,  corporation 
bonds  and  promissory  notes,  the  title  to  these  may  be  transferred, 
so  far  as  the  parties  to  the  transaction  are  concerned,  by  indorse- 
ment and  delivery;  but  there  being  a  third  party  interested  in 
the  case  of  corporate  stocks  and  bonds  and  policies  of  insurance, 
further  action  is  necessary ;  the  assignment  of  the  policy  of  insur- 
ance must  be  assented  to  by  the  agent  of  the  company  issuing 
same;  the  certificates  of  stock  must  be  cancelled  and  new  certifi- 
cates issued  by  the  corporation ;  and  where  corporate  bonds  have 
been  registered,  they  must  either  be  released  from  registry  or  trans- 
ferred to  the  name  of  the  new  owner  by  the  transfer  agent. 

(b)  DEEDS  are  always  used  to  convey  the  title  acquired  by 
deed ;  a  separate  assignment,  an  indorsement  on  a  deed,  or  a  bill 
of  sale  is  not  sufficient  to  pass  title  by  deed.    The  party  named  in 
a  deed  as  he  to  whom  the  property  is  conveyed,  is  called  the 


REAL  ESTATE:  SELF-TAUGHT  43 

grantee,  and  when  such  grantee  makes  another  deed  of  the  same 
property  to  another  person  he  becomes  the  grantor. 

(c)  BILLS  OF  SALE  are  used  to  transfer  the  title  of  per- 
sonal property;  and  these  are  frequently  used  by  careful  convey- 
ances to  transfer  certifictaes  of  stock,  and  corporate  bonds,  in 
addition  to  indorsement  and  delivery,  as  they  afford  tangible 
written  evidence  of  the  transfer.  They  are  used  for  the  transfer 
of  the  title  to  all  sorts  of  personal  property,  such  as  furniture,  live 
stock,  etc. 

Sec.  280,  A  proposed  purchaser  will  find  it  to  his  advantage 
to  study  the  "Purchase  Chart,"  Form  No.  I,  page  29,  of  Text 
Book,  to  put  him  on  his  guard  against  overlooking  anything  that 
should  be  mentioned  while  the  negotiations  are  in  progress,  as  a 
discussion  by  the  parties  of  all  the  points  involved,  before  entering 
into  a  contract,  will  save  both  time  and  trouble  afterward.  When 
there  is  a  building  and  loan  mortgage  on  a  place,  the  purchaser 
should  obtain  a  written  statement  from  the  agent  of  the  company, 
showing  exactly  the  amount  still  owing  and  the  monthly  payments, 
and  how  much  thereof  is  applied  to  the  principal,  and  how  much 
on  the  interest.  A  borrower  from  a  building  and  loan  association 
is  always  a  stockholder  and  usually  there  are  transfer  fees  to  be 
paid  when  the  certificate  of  stock  is  transferred.  These  fees  should 
be  borne  by  the  seller.  In  California,  the  taxes  on  personal  prop- 
erty, where  a  person  is  the  owner  of  both  real  and  personal  prop- 
erty, becomes  a  lien  on  the  real  property,  and  where  the  purchaser 
agrees  to  assume  the  taxes,  particularly  the  first  installment  for 
the  fiscal  year,  he  should  make  a  deduction  for  the  tax  on  per- 
sonal property,  if  ascertainable  at  the  time;  if  not  ascertainable, 
then  he  should  have  an  agreement  in  writing  from  the  seller  that 
he  will  pay  the  personal  property  tax ;  or  a  sum  sufficient  to  cover 
should  be  placed  in  the  hands  of  a  responsible  third  party  until 
the  taxes  are  ascertained  and  paid  by  the  seller.  Such  taxes 
usually  attach  as  a  lien  to  the  premises  in  which  the  seller  resides. 


44  REAL  ESTATE  SELF-TAUGHT 

Sec.  281.  When  an  agreement  is  made  for  the  sale,  or  fen 
the  mortgaging  or  leasing  of  property  belonging  to  an  estate,  or 
to  a  minor  or  incompetent  person,  such  agreement  should  be  made 
with  the  executor,  administrator  or  guardian,  and  contain  a  clause 
to  the  effect  that  the  same  shall  be  subject  to  the  confirmation  of 
the  Court  having  charge  of  said  matter. 

Sec.  282.  In  case  an  executor,  administrator  or  guardian 
enter  into  an  agreement  for  the  investment  of  the  funds  belonging 
to  an  estate,  or  to  a  ward,  the  agreement  should  also  be  made 
subject  to  the  approval  of  the  Court  having  charge  thereof; 
otherwise,  the  executor,  administrator  or  guardian  is  personally 
liable.  The  application  to  the  Court  takes  the  form  of  a  petition 
(see  Form  No.  137)  which  must  be  verified  upon  oath  bv  the 
petitioner;  the  order  of  the  Court,  made  upon  hearing,  directs 
that  the  petition  be  granted ;  and  a  certified  cogy  of  the  order 
must  be  filed  for  record,  with  the  deed,  lease  or  mortgage ;  and  the 
consideration  mentioned  in  the  instrument  of  conveyance,  must 
be  the  same  as  that  mentioned  in  the  order  of  the  Court.  In  this 
instance,  a  nominal  consideration  (see  Text  Book,  page  58)  will 
not  be  acceptable. 

Sec.  283.  In  California,  and  in  the  Western  states  generally, 
religious  corporations  not  organized  for  pecuniary  profit  are 
required  to  petition  the  Superior  Court  for  permission  to  sell  or 
mortgage  property.  Notice  of  intention  to  sell  or  to  mortgage 
must  be  pulished  as  directed  by  the  Court,  and  upon  hearing  of 
the  matter,  any  member  of  the  corporation  may  oppose  the  grant- 
ing of  the  order.  An  agreement  to  borrow  money  from  such  a 
corporation,  or  for  the  purchase  of  its  property,  should  contain 
a  clause  to  the  effect  that  the  same  is  made  subject  to  the  con- 
firmation of  the  Court. 

Sec.  284.  In  states  where  the  wife  is  entitled  to  dower,  the 
contract  should  contain  a  clause  providing  for  release  of  dower. 
The  release  of  the  wife's  contingent  right  to  dower  is  made  to 
the  party  to  whom  the  husband  conveys;  it  cannot  be  made  to 


REAL  ESTATE  SELF-TAUGHT  45 

the  husband  himself  nor  to  a  stranger.  The  release  must  be  by 
grant  deed,  but  in  some  of  the  states  the  mere  signing  by  the 
wife  of  the  husband's  deed  is  sufficient.  A  homestead  (see  Sec. 
125)  may  be  released  by  an  abandonment  of  homestead  (see 
Form  No.  59)  or  by  both  husband  and  wife  executing  the  deed  of 
conveyance. 

Sec.  285.  The  tendency  in  conveyancing  at  the  present  time 
is  in  the  direction  of  brevity  and  simplicity.  Some  conveyancers 
still  use  "enfeoff"  and  "aliene,"  and  the  rolling  of  these  and  other 
fine  phrases  under  the  tongue  with  suitable  intonation  impresses 
the  ordinary  mortal  that  by  means  of  that  particular  instrument 
the  thing  has  been  everlastingly  done,  finished,  completed,  ef- 
fected, accomplished,  performed,  executed,  achieved,  fulfilled, 
perpetrated  and  consummated.  On  the  other  hand,  persons  who 
are  not  accustomed  to  lengthy  instruments,  often  exclaim :  "My, 
what  a  long  paper!"  In  fact,  if  one  wishes  to  secure  a  right  of 
way  from  a  farmer,  he  should  make  the  instrument  as  brief  as 
possible,  as  the  tiller  of  the  soil  thinks  that  a  lengthy  paper,  even 
though  it  be  no  more  binding  than  a  short  one,  has  some  secret 
"hitch"  concealed  in  its  sinuous  folds.  In  any  written  instrument, 
wherever  figures  are  used,  the  same  should  also  be  written  in 
words;  as,  for  example:  Twenty-three  and  53-100  Dollars 
($23.53);  Lot  Number  36  (thirty-six),  Township  Four  (4), 
North,  etc. 

Sec.  286.  As  stated  in  Section  63,  page  31,  of  Text  Book, 
certain  contracts  are  required  by  law  to  be  in  writing.  The  laws 
of  California  also  provide  that  an  agreement  for  the  sale  of  goods, 
chattels  or  things  in  action,  at  a  price  of  not  less  than  $200, 
unless  the  buyer  accepts  or  receives  part  of  such  goods  and  chat- 
tels or  the  evidences,  or  some  of  them,  of  such  things  in  action, 
or  pays  at  the  time  some  part  of  the  purchase  price,  must  be  in 
writing;  but  when  a  sale  is  made  at  auction  an  entry  by  the 
auctioneer  in  his  sale  book,  at  the  time  of  the  sale,  of  the  kind  of 
property  sold,  the  terms  of  the  sale,  the  price,  and  the  names  of 


46  REAL  ESTATE  SELF-TAUGHT 

the  purchaser  and  person  on  whose  account  the  sale  is  made, 
is  a  sufficient  memorandum.  An  agreement  which,  by  its  terms, 
is  not  to  be  performed  in  the  lifetime  of  the  promisor,  or  an 
agreement  to  devise  or  bequeath  any  property,  or  to  make  pro- 
vision for  any  person  by  will,  must  be  in  writing. 

Sec.  287.  Any  contract  not  required  by  law  to  be  in  writing 
may  be  made  with  the  same  force  and  effect  as  if  in  writing.  Pru- 
dent foresight  and  the  liability  of  the  impressions  received  on  the 
memory  to  become  dim  by  lapse  of  time,  and  the  tendency  of 
each  individual  to  take  the  view  most  favorable  to  his  own  inter- 
ests when  questions  arise  regarding  the  meaning  ©f  a  verbal  con- 
tract, would  indicate  that  the  only  safe  rule  is  to  reduce  all  con- 
tracts to  writing.  The  execution  and  delivery  of  a  written 
contract,  whether  the  law  requires  it  to  be  in  writing  or  not, 
supersedes  all  negotiations  which  preceded  or  accompanied  the 
execution  of  the  instrument. 

Sec.  288.  In  addition  to  the  written  instruments  ordinarily 
employed,  the  broker  will  have  occasion  from  time  to  time  to  use 
other  supplementary  written  evidences  in  connection  with  some 
transactions.  Every  written  instrument,  such  as  a  contract, 
option,  etc.,  should  be  sufficient  in  itself  to  confer  all  of  the 
rights  that  the  purchaser  or  option-holder  supposed  he  was  ob- 
taining, and  the  value  of  having  those  instruments  carefully 
drafted  and  adequate  for  the  purpose  intended  will  be  realized 
only  after  loss  has  occurred  through  the  use  of  defective  or  in- 
sufficient writings.  In  this  connection,  attention  is  called  to 
Forms  Nos.  113  to  117,  both  inclusive,  relating  to  an  option  taken 
under  the  following  circumstances:  A  broker  submitted  to  the 
owner  an  option,  substantially  in  the  form  of  No.  112,  which  pro- 
vides for  the  owner  furnishing  an  unlimited  certificate  of  title 
(No.  47)  showing  the  premises  free  and  clear  of  incumbrances. 
At  the  time  of  signing  the  option,  the  owner  did  not  inform  the 
broker,  nor  did  the  broker  know,  that  the  premises  were  incum- 
bered  by  an  easement  in  favor  of  the  city,  in  which  the  premises 


REAL  ESTATE  SELF-TAUGHT  47 

were  situated,  for  a  right  of  way  for  a  pipe  line.  The  broker 
sold  the  premises  at  a  profit  of  about  $2,000,  and  agreed  with 
the  purchaser  to  furnish  a  deed  free  and  clear  of  incumbrances. 
The  transfer  was  placed  in  escrow  with  a  title  company.  (See 
Lesson  on  Escrows.)  When  the  title  company  were  about  to 
write  the  certificate  of  title,  they  requested  the  purchaser  to  waive 
in  writing  the  easement,  and  this  was  the  first  notice  the  pur- 
chaser had  that  the  premises  were  incumbered  by  an  easement. 
The  purchaser,  thereupon,  declined  to  take  the  premises  with  the 
easement.  In  this  transaction,  as  is  the  case  in  many  sales  of 
real  estate  through  brokers  or  option-holders,  the  owner  and 
the  purchaser  had  not  seen  each  other  at  all,  all  negotiations  be- 
tween the  parties  having  been  conducted  by  the  broker.  In  such 
a  case  it  is  advisable  for  the  broker  to  have  written  evidence  of 
every  step  in  the  transaction  in  order  to  show  that  he  is  acting 
in  good  faith.  Upon  the  refusal  of  the  purchaser  to  take  the 
premises  because  of  the  incumbrance,  the  broker  had  the  pur- 
chaser sign  Form  No.  113,  and  he  presented  this,  together  with 
Form  No.  114,  to  the  owner.  Upon  ascertaining  that  the  owner 
would  clear  the  incumbrance  from  the  premises,  he  then  advised 
the  purchaser  of  the  fact  as  per  Form  No.  115.  When  the  owner 
had  obtained  and  filed  his  deed  from  the  city,  quit-claiming  the 
incumbrance  to  him,  the  broker  then  had  the  title  company  write 
up  a  certificate  of  title,  showing  the  premises  free  of  incumbrances, 
and  he  tendered  such  certificate  to  the  purchaser  with  a  letter  as 
per  Form  No.  117.  In  instances  of  this  kind,  it  is  necessary  for 
the  broker  to  be  on  the  alert  and  safeguard  every  step  in  the  ne- 
gotiations by  a  writing,  if  he  wishes  to  keep  the  parties  in  line. 
It  is  not  probable  that  any  broker  who  reads  these  lines  will  have 
a  case  precisely  similar  to  the  foregoing,  and  these  suggestions 
and  forms  are  offered  merely  as  thought-savers  and  time-savers. 

Sec.  289.  For  a  receipt  for  deposit  paid  by  the  purchaser  on 
account  of  land  sold  him,  use  Form  No.  2  or  Form  No.  3,  page 
37,  Text  Book;  for  a  sale  made  by  the  agent,  in  behalf  of  the 


48  R£AI<  ESTATE  SELF-TAUGHT 

owner,  use  Form  No.  90;  for  an  agreement  of  sale  of  land  in  a 
city,  or  for  city  lots,  use  Form  No.  5,  with  modifications  as  to  re- 
strictions, etc.,  to  suit  the  case;  for  an  option,  containing  full 
terms,  and  giving  exclusive  right  of  purchase  for  a  certain  length 
of  time,  use  Form  No.  112. 

Sec.  290.  For  an  agreement  of  sale,  which  is  a  continuing 
option,  requiring  the  buyer  to  be  very  prompt  in  his  payments, 
the  seller  extending  the  time  from  month  to  month  as  such  pay- 
ments are  made,  use  Form  No.  7. 

Sec.  291.  It  is  always  best  to  have  all  such  agreements  made 
in  duplicate  or  triplicate,  and,  except  as  to  options,  all  such  agree- 
ments should  be  signed  by  each  party,  and  each  party  should 
retain  one  copy  of  the  agreement.  The  broker  also  should  keep 
a  copy  for  his  files. 

Sec.  292.  In  this  connection,  let  the  student  read  carefully 
Sections  61  to  79,  both  inclusive,  commencing  on  page  31  of  Text 
Book. 

Sec.  293.  Also  Sections  80  to  93,  inclusive,  commencing  on 
page  48  of  Text  Book,  subject  "Deeds,"  and  particularly  the 
"Analysis  of  a  Deed,"  and  comments  thereon,  pages  54  to  63. 
Also  the  subject  of  "Mortgages,"  Sections  93  to  108,  both  inclu- 
sive, commencing  on  page  75  of  Text  Book. 

Sec.  294.  See  Text  Book,  Section  92,  page  59,  as  to  where 
to  get  description  of  property  for  writing  up  deed  or  mortgage; 
and  Section  104,  page  78,  for  clause  to  be  inserted  in  "Purchase 
Money  Mortgage;"  and  Section  103,  page  78,  for  wording  of 
clause  conferring  right  to  pay  off  note  by  paying  bonus  of  inter- 
est ;  see  "Conditions,"  page  56,  for  wording  to  be  inserted  in  deed 
where  premises  are  to  be  conveyed  subject  to  a  mortgage  which 
is  to  be  assumed  by  purchaser. 

Sec.  295.  The  following  are  the  forms  for  which  the  student 
and  practicing  real  estate  man  will  have  the  most  frequent  use, 
and  they  are  enumerated  here  for  the  sake  of  convenient  reference. 


ESTATE  SELF-TAUGHT  49 

(a)  Assignments:     Separate  instrument,  No.  8,  page  44;  to 
be  annexed  to  instrument,  No.  9,  page  45 ;  to  be  endorsed  on 
instrument,  No.  10,  page  45 ;  of  a  lease,  No.  66,  page  162 ;  of  a 
mortgage,  No.  32,  page  87. 

(b)  Contracts:    Brief  memorandum  of  sale,  No.  2,  page  37; 
more  complete   memorandum  of  sale,   No.   3,   page  37;   formal 
memorandum  where  abstract  is  to  be  furnished  and  examined  by 
attorney  or  purchaser,  No.  4,  page  38;  contract  for  sale  of  land, 
providing  for  partial  payments,  for  building  restrictions,  and  for 
execution  and  delivery  of  deed,  and  delivery  of  certificate  of  title 
upon  full  payment  being  made  within  the  time  limited,  No.  5, 
page  40 ;  agent's  agreement  of  sale,  No.  90,  page  198 ;  owner's 
agreement  with  agent,  No.  89,  page  197;  builder's  contract,  very 
full  and  complete,   No.  49,  page  122;  contract  for  drilling  oil 
wells,  giving  full  details,   No.  65,  page   157;  party-wall  agree- 
ment,  frequently  used,  but  not  to  be  found  in  many  works  on 
real  estate,  No.  83,  page  174;  contract  appointing  agents  to  sub- 
divide and  sell  property,  very  frequently  used,  and  going  fully 
into  details,  but  seldom  met  with,  No.  87,  page  183;  declaration 
of  trust  in  respect  to  property  conveyed  in  trust  for  the  purpose 
of  being  subdivided  and  sold,  No.  88,  page  187;  bill  of  sale,  No. 
91,  page  199;  contract  of  conditional  sale,  or  a  sale  which  is  ap- 
parently a  lease,  No.  92,  page  199;  contract  to  extend  mortgage 
and  increase  rate  of  interest,  No.  36,  page  94;  chattel  mortgage,. 
No.  141  ;  crop  mortgage,  Form  No.  142;  contracts  of  exchange,, 
Nos.  109,  no  and  in  ;  special  clauses  in  lease,  Forms  143  to  153, 
inclusive. 

(c)  Deeds:  Analysis  of  a  deed,  showing  the  several  orderly 
parts,  No.  13,  page  55.  The  student  should  give  this  form  care- 
ful study,  and  should  read  over  carefully,  several  times,  the 
comments  thereon,  pages  58  to  63,  inclusive.  In  drawing  a  quit- 
claim deed,  refer  to  No.  14,  page  63 ;  a  deed  of  gift  from  hus- 
band to  wife,  No.  15,  page  63 ;  a  deed  to  mining  lands  or  mining 
rights,  No.  1 6,  page  64;  a  deed  from  several  grantors  to  County 


50  REAL  ESTATE  SELF-TAUGHT 

for  right  of  way  for  road,  No.  17,  page  65;  a  deed  of  right  of 
way  for  a  pipe  line  to  terminate  six  months  after  non-user,  No. 
84,  177;  of  agricultural  rights  by  a  corporation,  and  reserving 
the  mineral  rights,  thus  creating  two  estates  in  the  land,  No.  18, 
page  66;  this  form  shows  also  certified  copy  of  resolution  of 
Board  of  Directors  authorizing  the  officers  of  the  corporation 
to  execute  the  deed,  such  resolution  being  prefixed  to,  and  to  be 
recorded  as  a  part  of  the  deed;  of  a  deed  from  individuals  to  a 
corporation,  conveying  the  minerals,  and  rights,  privileges  and 
easements  necessary  for  extraction  and  removal  of  same,  the 
agricultural  rights  being  reserved,  and  the  acquisition  of  the 
mineral  rights  by  the  corporation  being  ratified  by  the  holders  of 
more  than  two-thirds  of  its  issued  and  outstanding  stock,  such 
ratification,  in  some  of  the  states,  being  necessary  to  the  validity 
of  the  deed,  No.  19,  page  68 ;  of  a  deed  of  trust  to  secure  a  note, 
called  "Trust  Deed,"  No.  34,  page  90;  of  reconveyance  of  trust 
property,  No.  35,  page  93. 

Sec.  296.  Ground  rent  leases,  where  the  law  permits  of  their 
being  made  for  from  thirty  to  fifty  years,  are  popular  at  present 
in  large  cities.  The  owner  of  the  ground  prefers  to  retain  the 
title  and  await  the  increase  in  value  which  will  come  by  lapse  of 
time,  rather  than  to  sell.  The  lessee,  on  the  other  hand,  rather 
than  to  buy  at  prevailing  high  prices,  prefers  to  take  a  long-time 
lease,  upon  such  terms  as  will  enable  him  to  calculate  a  fair  margin 
of  profit  after  paying  the  ground  rent,  cost  of  improvements  and 
maintenance.  A  broker  will  find  it  greatly  to  his  advantage,  where 
parties  wish  to  enter  into  a  contract  or  lease,  in  regard  to  which 
there  must  be  more  or  less  negotiation  pro  and  con  before  the 
final  terms  are  all  embodied,  to  submit  an  outline  or  synopsis  along 
the  lines  desired  by  his  client  and  containing  also  such  other  pro- 
visions as  ordinarily  go  into  a  document  of  the  kind.  He  will 
find  that  this  will  not  only  facilitate  the  negotiations,  but  will  come 
in  the  nature  of  a  surprise  to  his  client,  who  will  compliment  him 
on  his  tact  and  knowledge.  A  long-time  ground-rent  lease  is  one 


ESTATE  SELF-TAUGHT  51 

of  the  most  difficult  of  instruments  to  draft,  as  there  are  so  many 
contingencies  to  be  provided  for,  and  a  first-class  attorney  would 
charge  at  least  five  hundred  dollars  for  drawing  a  lease  such  as 
that  here  outlined.  Leases  of  this  kind  are  made  in  two  ways: 
(i)  Where  the  improvements  to  be  erected  by  the  lessee  are  only 
nominal  in  value,  provision  is  made  that  all  such  buildings,  struc- 
tures and  improvements  shall  be  and  become  the  property  of  the 
lessor,  and  no  compensation  therefor  shall  be  due,  allowed  or  paid 
therefor  to  the  lessee.  (2)  Where  the  improvements  are  extra- 
ordinary, as  in  the  case  of  a  hotel  or  business  block,  provision  is 
made  for  the  appraisal  of  the  improvements  at  the  end  of  the  term, 
as  provided  in  Form  No.  146.  To  indicate  what  such  a  lease 
should  contain,  the  following  outline  is  given : 

Sec.  297.     Synopsis  or  outline  for  a  ground-rent  lease : 

1.  Date,  names  and  residences  of  parties,  lessor,  or  party  of 
the  first  part,  lessee,  or  party  of  the  second  part. 

2.  Witnesseth,  that,  lessor,  in  consideration  of  rents  and  cov- 
enants to  be  paid,  kept,  performed  and  fulfilled  on  part  of  lessee, 
does  demise  and  lease  unto  lessee  the  premises,  situate  in  City, 
County  and  State  (description). 

3.  Habendum  (to  Have  and  to  Hold),  see  Form  No.  124, 
"Yielding  and  Paying,"  etc.     (Where  the  rent  is  payable  monthly 
in  advance  for  a  number  of  years,  it  is  the  custom,  in  some  in- 
stances, to  require  the  rent  for  the  first  month  and  for  the  last 
month  of  each  year,  to  be  paid  in  advance  at  the  beginning  of  the 
year,  for  the  better  assurance  of  the  lessor;  and  this  can  be  pro- 
vided for  in  the  lease,  if  desired). 

4.  Rent  reserved  is  to  be  paid  in  standard  gold  coin  of  the 
United  States;  dollar  defined  as  containing  at  least  25.8  grains 
of  gold  of  standard  weight  and  fineness  observed  at    mints    of 
United  States  at  date  of  lease ;  acceptance  by  lessor  of  currency, 
legal  tender,  checks,  coin,  money  or  value  whatever,  except  stand- 
ard gold  coin  for  any  installment  of  rent  shall  not  be  waiver  of 


52  REAL  ESTATE  SELF-TAUGHT 

his  right  to  demand  gold  coin  in  payment  of  any  other  installment 
or  installments. 

5.  As  a  further  consideration,  lessee  further  covenants  to  pay 
and  discharge,  in  addition  to  said  rent,  all  rates,  taxes,  charges  for 
revenue,  assessments  and  levies,  general  and  special,  ordinary  and 
extraordinary,  including  water  rates,  electric  light  and  gas  rates, 
assessed,  levied  or  imposed  on  said  premises,  or  upon  any  and  all 
buildings  thereon,  during  said  demised  term,  commencing  with 

the  taxes  for  the  fiscal  year ;  same  shall  be  made  in  the 

name  of  lessor,  be  paid  at  least  five  days  before  delinquency,  and 
duplicate  tax  receipts  therefor  delivered  to  lessor. 

6.  Lessee  agrees  to  erect,  finish  and  complete,  at  his  own  cost 
and  expense,  upon  said  premises,  a  (here  describe  building)  and 
have  the   same   completed   and   ready   for   occupancy   and   fully 

paid  for  by 

Said  building  shall  be  erected  under  the  inspection  and  to  the 

satisfaction  of  the  Building  Superintendent  of  the  City  of 

Said  building  shall  cost  at  least 

dollars ;  plans  and  specifications  therefor  shall  be 

approved  by  lessor  as  to  general  design,  method  of  construction, 
strength  of  materials  and  cost  of  building.  If  lessor  shall  not 
approve  plans  and  specifications  submitted  to  him,  they  shall  be 
submitted  to  a  board  of  three  architects,  one  to  be  appointed  by 
lessor,  one  by  lessees,  and  the  two  so  appointed  to  select  a  third  ; 
a  majority  report  of  said  board  on  said  plans  and  specifications 
shall  be  final,  and  the  building  shall  be  erected  in  accordance 
therewith.  If  the  plans  and  specifications  are  not  so  approved  by 
said  board,  then  further  plans  and  specifications  must  be  prepared 
and  submitted  in  like  manner. 

7.  Covenant  that  there  shall  be  no  mechanics'  liens  upon  any 
building  or  improvement  which  shall  be  upon  said  premises;  but 
if  there  should  be,  lessee  must  pay  off  same,  and  if  default  in 
payment  thereof  shall  continue  for  thirty  days,  lessor  may  pay 
off  same,  and  the  amount  so  paid,  including  expenses,  shall  be  so 


REAL  ESTATE  SELF-TAUGHT  53 

much  additional  rent  payable  at  the  next  rent  day,  with  interest 
thereon  at  the  rate  of  seven  per  cent  per  annum ;  or  lessor  may,  at 
his  option,  terminate  the  lease;  and  if  lessor  shall  conclude  or 
determine  that  his  estate  may  or  might  suffer  injury  or  damage  by 
reason  of  the  filing  of  any  lien  or  suit  to  foreclose  the  same,  he  may 
require  lessee  to  give  bond. 

8.  Covenant  that  the  premises  shall  not  be  used  for  any  im- 
moral or  unlawful  purposes;  and  that  said  lessee  will  indemnify 
and  save  harmless  lessor  from  any  loss,  damage  or  expense  arising 
out  of  any  accident  or  other  occurrence  causing  injury  to  any 
person  or  property,  and  due  directly  or  indirectly  to  use  of  said 
premises  by  said  lessee,  or  any  person  holding  under  him. 

9.  Covenant  as  to  removing  or  tearing  down  buildings  only 
upon  written  consent  of  lessor  and  upon  the  following  condition 
precedent  being  first   fulfilled:     Lessee   shall  first  execute   and 
deliver  to  lessor  a  contract,  guaranteed  by  two  good  and  sufficient 

sureties,  agreeing  to  pay  lessor dollars 

within  two  years  of  the  date  thereof,  said  contract  to  provide  that 
inasumuch  as  it  is  impossible  to  determine  upon  the  exact  damages 
and  injury  which  lessor  will  suffer  by  reason  of  the  failure  of 
lessee  to  construct  a  building  or  buildings  upon  said  premises 

within  said  two  years,  said  sum  of dollars 

shall  be  considered  as  liquidated  damages,   and  lessee  shall  be 
estopped  from  asserting  same  as  a  penalty;  or  lessee,  if  he  elects, 

may,  in  lieu  of  sureties,  deposit dollars  with 

Trust  Company  upon  the  conditions 

above  mentioned. 

10.  Covenant  as  to  insurance.    See  Form  No.  144. 

11.  Covenant  as  to  owner's  right  to  post  notices.     See  Form 
No.  145. 

12.  Covenant  as  to  appraisal  of  buildings.    See  Form  No.  146. 

13.  Lessor's  warranty.    See  Form  No.  147. 

14.  Covenant  to  pay  rent.    See  Form  No.  148. 

15.  Covenant  not  to  assign  lease  or  sublet  premises.      See 
Form  No.  149. 

1 6.  Heirs  and  assigns  bound.    See  Form  No.  150. 

17.  Testatum  clause. 


54  REAL  ESTATE  SELF-TAUGHT 


LESSON  VIII. 

OF  MAKING  TRANSFERS  IN  ESCROW 

Study  Sections  109  to  121,  inclusive,  of  Text  Book 


ESTATE  SELF-T AUGHT  55 


LESSON  IX. 

OF    RENTING   AND    INSURING 

In  this  connection  study  Section  127,  pages  134  and  135,  of  the 
Text  Book. 

Section  297.  RENTING.  All  persons  who  are  qualified  to 
hold  real  estate  and  who  labor  under  no  disability,  may  make  a 
lease.  A  tenant  for  life  can  make  a  lease  only  to  the  extent  of  his 
interest.  Joint  tenants  and  tenants  in  common  may  make  leases 
jointly  and  severally.  When  joint  tenants  join  in  a  lease,  it  is 
only  one  lease,  as  they  have  only  one  estate. 

Sec.  298.  Every  lease  should  be  in  writing,  and  should 
specify : 

(a)  The  date  on  which  the  tenancy  is  to  commence ; 

(b)  How  long  the  tenancy  is  to  continue; 

(c)  The  days  whereon,  and  the  place  where,   the  rent  is 
payable ; 

(d)  Conditions  which  the  landlord  may  deem  necessary  to 
protect  his  interests,  such  as  that  the  tenant  shall  not  sell  liquor 
on  the  premises,  nor  conduct  a  disorderly  house,  etc. ; 

(e)  And  should  provide  that  upon  the  failure  of  the  tenant 
to  pay  the  rent,  or  upon  his  violation  of  any  of  the  covenants  of 
the  lease,  the  landlord  may  terminate  the  lease,  re-enter  and  oust 
the  tenant. 

See  Form  No.  60  which  contains  covenants  well  adapted  to 
the  leasing  of  a  dwelling  house.  Also,  synopsis  of  a  Ground 
Rent  lease,  Sec.  296. 

Sec.  299.  Any  personal  property  belonging  to  the  landlord, 
and  left  on  the  premises  for  the  use  of  the  tenant,  should  be  listed 
item  by  item,  in  a  separate  paper,  be  headed  "Exhibit  A,"  and 
be  attached  to  the  lease,  and  be  referred  to  as  such  in  the  lease. 


56  REAL  ESTATE  SELF-TAUGHT 

Sec.  300.  If  the  tenant  intends  to  add  anything  in  the  way 
of  fixtures  to  the  landlord's  premises,  he  should  be  given  the 
privilege  to  do  so  in  the  lease,  together  with  the  right  to  remove 
such  fixtures  while  entitled  to  possession  or  within  a  reasonable 
time  thereafter.  If  the  tenant  does  not  exercise  his  privilege  to 
remove  his  fixtures  before  his  lease  expires,  he  cannot  lawfully  do 
so  afterwards,  unless  provision  therefor  is  made  in  the  lease,  as 
the  right  to  re-possess  the  land,  and  also  the  fixtures  as  a  part  of 
the  land,  vests  immediately  in  the  landlord. 

Sec.  301.  Firms  and  corporations  who  carry  on  the  renting 
of  houses  and  other  buildings  on  an  extensive  scale,  have  the 
matter  of  giving  out  lists  of  such  houses  or  buildings  to  intending 
renters  reduced  to  a  system.  The  forms  in  use  by  Wright  & 
Callender  Company,  one  of  the  largest  real  estate  and  rental  con- 
cerns in  Los  Angeles,  for  the  rental  of  houses,  are  shown  in 
numbers  123  to  125  inclusive.  The  use  of  forms  such  as  these 
puts  inquirers  on  their  honor,  and  enables  the  agent  to  secure  his 
hard-earned  commission,  and  prevents  the  dishonest  and  slippery 
renter  from  getting  a  foothold  before  he  has  paid  his  rent.  The 
rental  and  the  selling  branches  of  the  real  estate  business  go  well 
together,  although  the  former  is  less  remunerative  and  involves 
more  detail  than  the  latter.  It  sometimes  happens  that  a  would- 
be  renter  cannot  find  a  residence  to  suit  him,  and  he  then  is  in  a 
mood  to  buy — particularly  after  he  has  looked  in  vain  for  a  week 
for  a  suitable  house  to  rent. 

Sec.  302.  The  mutual  obligations  of  the  lessor  and  lessee 
under  a  lease  are  fixed  almost  entirely  by  the  covenants  of  the 
lease.  Covenants  in  a  lease  to  make  repairs,  to  pay  rent,  to 
cultivate  land  in  a  certain  manner,  for  quiet  enjoyment  of  the 
premises,  and  all  implied  covenants,  run  with  the  land.  If  a  lessor 
assigns  the  remainder  of  a  term  of  a  lease,  his  lessee  is  liable  on 
the  covenants  running  with  the  land.  If  the  assignment  is  for  a 
shorter  term  than  the  remainder  of  the  term  of  the  original  lease, 
even  by  one  day,  the  transfer  is  not  an  assignment,  but  is  a  sub- 


REAL  ESTATE  SELF-TAUGHT  57 

.ease,  and  in  such  case  the  sub-lessee  is  liable  to  the  lessee  and  not 
to  the  original  landlord. 

Sec.  303.  A  good  many  landlords  object  to  children,  and  a 
prominent  real  estate  broker  in  speaking  on  this  subject,  said: 
"The  childre  n  of  today  are  not  brought  up  as  they  should  be. 
Discipline  is  not  taught  and  applied  as  in  the  old  days.  In  my 
boyhood  days,  discipline  meant  respect  to  your  elders,  subordina- 
tion to  authority  and  education  in  morals  and  manners  as  well  as 
in  schooling.  It  also  meant  punishment  for  errors  committed  as 
a  preventive  for  the  future.  At  the  present  time,  parents  seem  to 
think  their  children  can  do  no  wrong  and  consequently  are  not 
reprimanded  or  corrected.  The  result  is  that  many  of  the  children 
of  today  are  nuisances  and  objectionable  in  many  ways,  espe- 
cially to  owners  of  real  estate,  whose  property  is  disfigured  or 
destroyed  by  these  young  free  lances.  The  old  proverb,  'Spare 
the  rod  and  spoil  the  child,'  is  just  as  good  now  as  when  it  was 
written.  Owners  and  agents,  if  they  draw  strict  rules  against 
children,  cannot  be  blamed,  as  they  have  suffered  from  children's 
misdeeds  and  lack  of  discipline  and  have  to  safeguard  themselves 
against  further  troubles  and  losses." 

Sec.  304.  An  agent  should  familiarize  himself  with  the  laws 
of  his  State  in  respect  to  giving  tenants  notice  to  quit  within  the 
time  prescribed  by  law. 

Sec.  305.  INSURING.  In  this  connection,  study  Section 
122,  page  101,  of  Text  Book.  A  broker  should  endeavor  to  se- 
cure an  agency  for  underwriting  fire  insurance  in  some  of  the 
well-known  companies.  Boards  of  insurance  underwriters  govern 
the  placing  of  fire  insurance  in  large  cities  and  real  estate  brokers 
doing  business  in  an  ordinary  way  oftentimes  place  insurance  for 
their  clients  through  insurance  agents  who  make  a  specialty  of 
insurance.  The  broker  should  call  the  attention  of  all  of  his 
friends  and  acquaintances  to  the  fact  that  he  places  insurance 
and  request  that  they  favor  him  when  in  need  of  insurance. 


58  REAL  ESTATE  SELF-TAUGHT 

Sec.  306.  A  veteran  underwriter  recommends  that  the  ama- 
teur agent  study  the  copy  of  the  printed  form  of  a  policy  of  fire 
insurance,  as  that  contains  the  law  of  the  contract.  Any  and  all 
persons  who  carefully  read,  study  and  follow  the  wording  of  the 
policy  cannot  make  an  error  that  will  void  the  contract.  In  all 
insurance  policies  the  words  "where,"  "when"  and  "how"  must  be 
kept  in  view.  Applying  each  of  these  words  in  its  proper  place 
will  enable  anyone  of  ordinary  education  to  write  up  a  proper 
contract  of  fire  insurance.  The  tendency  among  agents  in  making 
up  policy  forms  is  to  enumerate  every  class  of  goods  that  might 
come  under  the  head  of  the  item  intended  to  be  described.  This 
frequently  leads  to  results  not  intended.  In  a  recent  case,  the 
Court  held  that  a  policy  covering  "stock  of  family  groceries,  cases, 
lamps,  scales  and  other  merchandise  for  sale,"  covered  cases, 
lamps  and  scales  not  for  sale,  and  in  another  case  the  policy  cov- 
ered" lumber  piled  in  mill  building,  on  cars,  under  mill  sheds,  and 
in  sheds  adjoining  to  said  mill  building."  The  court  held  that 
lumber  sheds  from  75  feet  to  200  feet  distant  were  "mill  sheds"  as 
described  in  the  policy.  The  following  are  recommended  as 
suitable  forms  for  the  several  classes  of  property  named : 
Dwelling  and  Contents. 

$ On  the story building,  including  side- 
walks, awnings  and  all  fixtures  and  appurtenances  attached  thereto 
and  being  part  thereof,  while  occupied  only  as  a  family  dwelling- 
house,  situate and 

$ On  all  furniture  and  household  personal  effects  of 

the  insured,  his  family  and  servants,  not  prohibited  and  or  excepted 
in  the  printed  conditions  of  this  policy,  while  contained  in  above 
described  dwelling-house. 

Mercantile  Building  and  Stock  Form. 

$ On  the story building,  including  side- 
walks, awnings  and  all  fixtures  and  appurtenances  attached 
thereto  and  being  a  part  thereof,  while  occupied  for  mercantile 
purposes  only,  situate 


REAL  ESTATE  SELF-TAUGHT  59 

$ On  all  furniture,  trade  fixtures,  supplies  for  store  and 

office  use,  tools,  machines  and  appurtenances  used  in  the  business, 
not  kept  for  sale,  and  not  excepted  in  the  printed  portion  of  this 
policy. 

$ On  all  merchandise  of  every  description  kept  for  sale, 

and  not  excepted  in  the  printed  conditions  of  this  policy,  consist- 
ing principally  of all  and  only  while  contained  in  the  above 

described  building  and  on  and  under  its  sidewalks. 
Manufacturing  Plant. 

$ On  the story building,  including  open 

platforms  and  open  scales  adjoining,  and  all  fixtures  and  appurt- 
enances attached  thereto  and  being  a  part  thereof,  other  than 
manufacturing  fixtures  and  appurtenances,  while  occupied  as 
a power  flour  mill. 

$ On  all  machinery,  tools,  implements,  furniture,  ap- 
paratus, mill  and  office  supplies  not  kept  for  sale  and  not  pro- 
hibited and/or  excepted  in  the  printed  portion  of  this  policy,  and 
all  fixtures  and  appurtenances  directly  connected  with  flour 
handling  and  manufacturing,  except  boilers  and  connections  and 
the  main  power  engines. 

$ On  all  boilers,  piping  to  first  joint,  and  all  appurt- 
enances attached  thereto,  and  main  power  engines,  fly  wheels,  and 
engine  and  fly  wheel  shafting  to  first  connection. 

Sec.  307.  A  mortgagee  has  an  insurable  interest,  but  it  is  not 
good  underwriting  for  Company  A  to  write  $1,000  on  the  mort- 
gagee interest  and  Company  B  to  write  $1,000  on  the  mortgaged 
property.  In  case  of  a  $1,000  loss,  A  would  pay  the  mortgagee 
and  B  would  pay  the  owner.  It  is  safer  to  write  the  policy  in  the 
name  of  the  owner,  with  the  loss,  if  any,  payable  to  the  mortgagee 
as  his  interest  may  appear.  This  rule  also  applies  to  insurable 
property  sold  on  a  contract  for  a  deed,  or  where  same  is  sold  on  the 
installment  plan,  and  wherever  there  are  two  or  more  parties 
having  equities  in  the  same  property. 

Sec.  308.  Leaving  the  blank  for  the  amount  of  other  or  total 
insurance  permitted  unfilled  is  one  of  the  worst  features  of  under- 


OO  REAL  ESTATE  SELF-TAUGHT 

writing,  as  it  permits  unlimited  insurance  without  regard  to  the 
value  of  the  property  or  the  character  of  the  insured. 

Sec.  309.  The  permit  for  other  insurance  as  usually  written 
is  not  as  clear  as  it  seems  on  its  face.  It  has  been  held  by  the 
courts  that  a  policy  for  $2,500  with  $2,500  total  concurrent  insur- 
ance permitted,  allowed  $2,500  additional,  or  $5,000  in  all.  The 
safest  form  is  to  write:  "$2,500  total  insurance  permitted,  in- 
cluding the  amount  of  this  policy." 

Sec.  310.  The  broker  should  keep  a  correct  record  of  each 
policy  with  full  description  of  the  property,  date  of  policy,  amount, 
and  date  when  same  expires  and  reduce  the  dates  of  expiration 
to  a  system  so  that  such  dates  will  be  called  to  his  attention 
almost  automatically.  Record  books,  especially  designed  for  the 
recording  of  policies,  are  furnished  by  some  of  the  insurance 
companies;  and  they  also  furnish  all  blanks  that  are  required  to 
be  attached  to  policies,  and  blanks  for  reports  to  principal  agency. 
A  good  many  owners  are  careless  in  respect  to  renewing  their 
insurance  and  rely  on  the  agent  to  look  after  the  matter  for  them, 
and  if  the  agent  fails  in  this  regard,  they  think  he  has  neglected 
their  interests  and  feel  aggrieved  as  well  as  alarmed  that  their 
property  is  not  protected  against  loss.  Besides,  other  agents  are 
in  the  field  and  competition  in  the  insurance  line  is  keen.  Vacancy 
permits,  good  for  sixty  days,  usually  form  part  of  the  policy  on 
dwellings.  Should  any  premises,  under  the  charge  of  the  agent, 
become  vacant,  he  should  see  that  a  vacancy  permit  is  attached 
to  the  policy  of  insurance,  if  no  such  permit  is  contained  in  the 
policy  itself.  Vacancy  is  regarded  by  insurance  companies  as  a 
decided  increase  of  hazard  and  agents  are  cautioned  to  be  guarded 
in  granting  permits  therefor.  If  the  vacancy  extends  over  sixty 
days,  a  two-thirds  value  clause  permit  is  attached,  specifying  cer- 
tain requirements  as  to  the  care  of  the  property,  and  if  these  are 
not  complied  with  the  policy  becomes  void.  Fire  insurance  under- 
writing, if  vigorously  pushed  and  properly  looked  after,  is  in  itself 
a  remunerative  feature  of  the  real  estate  broker's  business. 


REAL  ESTATE  SELF-TAUGHT  61 


LESSON  X. 

OF  SUBDIVIDING. 

Sec.  311.  In  this  connection  study  Sections  134  to  139  of 
Text  Book,  together  with  Forms  Nos.  87,  88  and  167. 

Sec.  312.  In  addition  to  the  three  modes  of  placing  subdi- 
visions on  the  market,  as  mentioned  in  Sec.  134,  there  are  at  least 
two  other  ways,  namely :  First,  by  organizing  a  corporation,  and 
issuing  stock  to  the  incorporators  according  to  their  respective 
interests,  and  letting  them  share  in  the  expenses  and  participate 
in  the  earnings  in  proportion  to  their  holdings  of  stock.  In  such 
case,  all  of  the  details  of  the  subdivision  become  a  matter  for  the 
directors  and  officers  to  act  upon  and  execute.  Second,  by  dividing 
the  estimated  expenses  of  the  subdivision  into  an  equal  number 
of  units  and  taking  subscriptions  for  such  units,  as  set  forth  in 
Form  No.  155,  payments  on  account  of  such  subscriptions  being 
made  as  indicated  in  said  agreement. 

Sec.  313.  Where  the  property  is  placed  on  the  market,  indi- 
cated in  Forms  Nos.  88  or  155,  a  payment  is  made  to  the  owner 
by  the  person  or  persons  engineering  the  deal,  and  the  owner 
thereupon  conveys  the  property  to  a  trust  company  or  bank  ab- 
solutely, and  such  deed  is  placed  of  record,  so  that  the  trust  com- 
pany or  bank  appears  of  record  as  the  sole  owner.  The  trust 
company  or  bank  issues  a  declaration  of  trust,  similar  to  that 
shown  in  Form  No.  88,  and  bearing  the  same  date  as  the  deed, 
but  this  declaration  of  trust  is  not  placed  of  record,  for  the  reason 
that,  if  it  were  placed  on  record,  all  of  the  parties  to  it  would 
have  to  join  in  each  deed  or  contract  for  the  conveyance  of  lots. 
The  trust  company  or  bank  is  in  a  safe  position,  as  the  title  to 
the  property  is  vested  in  it,  and  it  receives  and  handles  all  of  the 
moneys  and  makes  partial  payments  on  the  indebtedness  due  the 
owner  until  such  indebtedness  is  extinguished.  The  taxes,  ex- 


62  REAL  ESTATE  SELF-TAUGHT 

penses  and  commissions  are  also  paid  by  the  bank  or  trust  com- 
pany, the  bills  therefor  being  first  O.  K.'d  by  the  beneficiary  or 
subdivides  Form  No.  155  is  a  plan  devised  by  Mr.  J.  B.  Leiser, 
of  Los  Angeles,  and  is  designed  to  assure  the  investors  in  a  sub- 
division proposition  that  they  will  receive  fair  and  equitable  treat- 
ment at  the  hands  of  the  agent.  A  subscription  agreement,  such 
as  this,  ought  to  make  it  easier  for  an  agent  to  induce  capitalists 
to  join  him  placing  a  tract  on  the  market. 

Sec.  314.  Lots  in  subdivisions  are  usually  sold  on  contracts 
(Form  No.  7)  which  are  neither  acknowledged  nor  recorded. 
The  contract-purchaser  does  not  appear  at  all  in  the  public 
records  as  the  owner  of  the  lot  he  has  purchased.  The  contract- 
purchaser  in  such  case  has  to  depend  a  good  deal  on  the  integrity 
and  financial  responsibility  of  the  subdivider,  and  oftentimes  the 
latter  is  deeply  indebted  to  the  owner  for  the  lots.  In  a  recent  in- 
stance, a  party  purchased  a  number  of  lots  at  $150  each  and  paid 
cash  in  full  for  them.  He  sold  the  lots  on  contracts  at  from  $300 
to  $600  each,  payable  one-third  in  cash,  and  the  balance  in  six 
months  and  twelve  months,  with  interest  on  the  deferred  pay- 
ments at  7%  per  annum,  payable  semi-annually.  Desiring  to  raise 
money  to  buy  more  lots,  he  borrowed  from  another  party  on  the 
lots  he  already  owned  a  considerable  sum,  giving  his  note  therefor, 
secured  by  a  deed  of  trust  on  the  lots,  with  privilege  of  having 
any  lot  released  from  the  trust  deed  upon  the  payment  of  $200  in 
cash,  this  provision  being  inserted  to  enable  him  to  make  delivery 
of  the  lots  to  his  contract  purchasers  as  they  made  their  last  pay- 
ments. He  failed  to  pay  his  note,  became  bankrupt,  and  the  other 
party  became  owner  of  the  lots,  and  the  contract-purchasers  lost 
what  they  had  paid  for  the  lots.  Contracts  for  the  sale  of  lots 
should  be  just  and  equitable  in  their  terms,  both  to  the  seller  and 
to  the  buyer.  Form  No.  154  is  an  example  of  a  loose- jointed 
contract,  wherein  the  payments  made  are  treated  as  so  much  rent, 
and  which  provides,  in  two  instances,  that  the  seller  may,  in  lieu 
of  doing  what  he  is  supposed  to  agree  to  do,  return  to  the  pur- 


ESTATE  SELF-TAUGHT  63 

chaser  the  money  paid  with  6%  interest  thereon,  and  gives  notict 
that  the  contract  issued  to  the  buyer  is  based  on  a  prior  contract 
between  the  seller  and  another  party,  leaving  the  buyer  to  draw 
the  inference,  if  he  is  shrewd  enough  to  do  so,  that  if  the  pro- 
visions of  the  prior  contract  are  not  carried  out  by  the  seller,  the 
contract  with  the  purchaser  will  fail  also.  The  purchaser  rarely 
takes  the  precaution  to  ascertain  what  the  provisions  of  such 
prior  contract  are.  The  profits  on  subdivisions,  when  carried  on 
in  a  legitimate  way,  are  ample  enough,  and  the  small  investor 
should  be  assured  that  when  he  has  paid  for  his  lot  he  will  receive 
a  marketable  title  and  fair  treatment. 

Sec.  315.  Form  No.  156  is  a  Sales  Report  to  be  used  by  the 
tract  agent  in  making  daily  reports  to  the  main  office  of  sales 
made  by  him.  The  tract  agent  turns  in  daily  to  the  main  office 
one  of  these  slips  for  each  lot  sold  by  him,  together  with  the 
amount  of  the  deposit  thereon  received  by  him.  By  means  of 
these  reports,  the  main  office  is  kept  advised  as  to  lots  sold,  who 
the  purchasers  are,  and  when  they  will  call  to  receive  and  sign 
contracts  of  sale. 

Sec.  316.  Payments  on  lot-contracts  are  made  direct  to  a 
bank  or  trust  company,  if  sold  by  the  latter.  Where  the  lots  are 
sold  by  an  individual,  the  lot-contracts  are  generally  placed  in  a 
bank,  and  the  purchasers  are  notified  to  make  payments  at  the 
bank  (as  a  matter  of  convenience)  for  the  account  of  the  seller. 
Lot-contracts  are  issued  in  duplicate,  and  the  purchaser,  when  he 
makes  a  payment,  brings  his  contract  and  has  the  payment  en- 
dorsed on  the  back  thereof  as  per  form  No.  157.  The  contract 
held  by  the  bank  is  kept  in  an  envelope  like  form  No.  158. 

Sec.  317.  Restrictions  as  to  the  value  of  the  building,  and 
the  distance  it  is  to  be  from  the  front  line  of  the  lot  and  from  the 
side  line,  and  as  to  prohibiting  the  conveyance  of  the  premises  to 
any  but  members  of  the  white  race  (see  Forms  Nos.  5  and  87) 
have  been  pretty  generally  adopted  in  respect  to  high-class  subdi- 
visions of  late  years.  A  good  deal  has  been  said  pro  and  con  as  to 


64  REAL  ESTATE  SELF-TAUGHT 

the  value  of  building  restrictions.  It  has  been  argued  that  these 
restrictions  are  handed  down  indefinitely  from  seller  to  buyer  and 
impose  needless  hardship  on  one's  liberty  to  do  as  he  pleases.  The 
tendency  at  the  present  time  is  to  so  word  restrictions  that  they 
expire  by  limitation  after  a  certain  time,  say  five  years.  When 
lots  in  a  high-grade  subdivision  are  first  placed  on  the  market, 
restrictions  are  of  value  in  assuring  purchasers  that  the  lots  in  the 
tract  will  be  improved  in  a  corresponding  and  uniform  manner. 

Sec.  318.  In  placing  a  subdivision  on  the  market,  the  at- 
tractive features,  such  as  desirability  and  easy  access  of  location, 
water  piped  to  every  lot,  cement  sidewalks  and  curbs,  graded 
streets,  fountains,  parks,  and  archways  at  the  entrance  of  the 
principal  streets,  should  be  carefully  thought  out  and  executed. 
As  soon  as  the  tract  has  been  surveyed,  a  plat  of  same  should  be 
made,  and  the  tract  should  then  be  well  advertised,  and  induce- 
ments, such  as  a  discount,  offered  to  early  investors.  An  opening 
day  should  then  be  announced,  and  free  transportation  offered,  ob- 
tainable at  the  town  office  of  the  tract.  Interest  in  the  tract 
should  be  worked  up  in  every  possible  way,  and  one  or  more 
agents  should  be  on  the  tract  daily  to  show  lots  to  intending  pur- 
chasers. A  quarter-page,  half-page  or  whole  page  of  one  or  more 
newspapers  should  be  covered  with  a  well-displayed  advertisement 
of  the  tract.  Wealthy  people  have  their  homes  in  courts  and 
places  where  they  are  exclusive  to  some  extent  by  reason  of  price 
as  well  as  by  entrance  gates  and  archways,  and  the  entrance  gate 
and  the  archway  are  factors  to  be  reckoned  with  in  opening  up 
tracts  for  the  so-called  middle  classes.  While  the  advertising  and 
hurrah  goes  on,  lots  sell  readily,  as  a  rule,  in  new  tracts,  but  the 
sale  lags  when  the  interest  fags. 

Sec.  319.  Lots  are  sometimes  auctioned  off  with  brass-band 
and  barbecue  accompaniments.  The  following  are  extracts  from 
a  recent  announcement  of  an  auction  sale  of  this  kind : 

Grand  Auction  Sale  of  Business  and  Residence  Lots  and 
acreage  at  the  new  townsite  of  BENEDICT  on  the  new  Santa 


REAL  ESTATE  SELE-TAUGHT  65 

Ana  Electric  Railroad,  30  minutes'  ride  from  Los  Angeles.  Com- 
mencing Saturday,  March  ijth,  1906,  at  10  a.  m.,  and  continuing 
on  following  Monday  if  lots  not  all  sold.  Call  at  our  offices  for 
particulars.  Lots  valued  at  $2,000  given  away  free. 

We  desire  the  ladies  present.  A  large  number  of  ladies  always 
attend  our  sales,  and  they  are  often  the  shrewdest  buyers.  Hun- 
dreds of  families  are  living  in  their  own  homes  today,  because 
the  good  wife  bought  a  lot  at  our  sales.  We  are  always  glad  to 
see  them,  and  pay  especial  attention  to  lady  buyers. 

We  have  arranged  very  easy  terms,  that  will  enable  each  and 
every  one  so  desiring  to  buy  a  lot  and  pay  for  it  without  missing 
a  dollar  so  expended.  The  terms  will  be  only  $25  down  on  each 
lot,  balance  payable  $10  per  month.  An  unlimited  certificate  of 
title  will  be  furnished  with  each  purchase  free. 

Remember,  we  make  an  auction  sale  of  this  Townsite  in  order 
that  a  large  number  of  investors  may  become  interested  with  us 
quickly.  We  expect  to  get  value  for  this  subdivision,  because  we 
believe  that  our  loss  now  will  be  your  gain,  and  because  we  are 
convinced  that  our  present  loss  will  be  more  than  compensated  by 
the  enhancement  in  value  of  the  lots  remaining  unsold.  After 
having  spent  months  in  looking  cfver  Southern  California  and 
studying  its  prospects  for  the  future,  we  have  every  reason  to 
believe  that  there  is  not  a  foot  of  ground  anywhere  in  Benedict 
but  will  sell,  in  a  short  time,  for  five  to  ten  times  the  auction 
prices.  We  have  the  best  and  most  healthful  climate,  and  the 
most  productive  soil  in  the  world.  These  well-known  facts  are 
yearly  drawing  thousands  upon  thousands  of  families  from  the 
East;  and,  after  spending  one  year  in  our  delightful  climate, 
very  few  there  are  who  will  be  satisfied  to  endure  again  the  rigors 
of  an  eastern  winter.  Tell  us  where  a  man  can  find  more  to 
please  and  benefit  him  than  in  the  beautiful  townsite,  Benedict, 
on  the  electric  car  line,  thirty  minutes'  ride  from  Los  Angeles. 

Five  lots  worth  $2.000  given  away  free  during  the  sale.  The 
lots  are  given  away  simply  as  an  advertisement  to  call  the  at- 


66  REAL  ESTATE  SELF-TAUGHT 

tention  of  the  general  public  to  our  tract,  as  we  know  that  the 
distribution  of  these  presents  will  attract  the  attention  of  many 
persons  who  otherwise  would  not  attend  our  sales ;  and  if  they 
once  see  the  desirability  of  our  lots  for  residential  purposes  or 
speculation,  and  the  low  prices  for  which  they  will  be  sold,  the 
public  will  undoubtedly  purchase  in  our  tract,  instead  of  in  some 
less  favored  localities. 

Remember,  no  one  need  buy,  or  even  bid  on,  a  lot  to  receive 
the  presents.  They  are  given  away  Absolutely  Free  to  those  who 
attend  the  sale  as  well  as  to  those  who  do  purchase. 

How  the  lots  are  given  away :  Every  man  and  woman  who 
attends  these  sales  will  receive  a  ticket  free  entitling  them  to  par- 
ticipate in  the  Grand  Distribution,  providing  they  are  at  the  sales 
before  1 130  p.  m.  Coupons  will  be  taken  up  at  1 130  p.  m.  each 
day,  and  lots  will  be  given  away  at  different  times  until  the  sale 
is  over,  which  will  be  about  4  p.  m.  Don't  fail  to  come.  The  lots 
are  free.  No  lottery.  No  charge. 

COMPLIMENTARY:  This  ticket  No.  15935 
Entitles  the  bearer  (if  at  the  sale)  to  participate  in  the  GRAND 
DISTRIBUTION  of  $2,000  WORTH  OF  LOTS  to  be  given 
away  FREE  at  the  GRAND  AUCTION  SALE  OF  LOTS  AND 
ACREAGE  at  town  of  BENEDICT  on  Santa  Ana  Electric  Line, 
Saturday,  March  17,  1906,  at  10  a.  m.,  or  at  any  postponement 
thereof.  (Good  for  anyone  over  18  years  of  age,  whether  he 
purchases  or  not.) 

(Coupon)— No.  15935 

Tear  off  this  coupon  and  give  to  collector  on  tract.  KEEP 
LARGE  PART  until  drawing  is  over. 


REAL  ESTATE  SELF-TAUGHT  67 


LESSON  XL 

OF  BUILDING  AND  WRECKING 

Section  320.  In  this  connection,  study  Sections  124  and  125 
of  Text  Book,  pages  115  to  132. 

Sec.  321.  The  real  estate  broker  should  make  the  erection  of 
buildings  a  study,  so  as  to  familiarize  himself  with  the  technical 
terms  employed  among  builders,  and  for  the  purpose  of  learning 
how  to  build  economically  and  attractively.  A  broker  who  does 
not  object  to  frequent  removals  can  erect  a  home  according  to 
the  latest  and  more  pleasing  designs,  paying  particular  attention 
to  the  decorations  on  the  front  exterior  and  in  the  interior,  and 
after  he  has  tastefully  furnished  the  house  and  occupied  it  for  n 
time,  offer  it  for  sale.  He  can  sometimes  effect  the  sale  of  his  own 
house  by  first  offering  a  customer  an  inferior  house  at  about  the 
same  price,  and  remarking  incidentally  that  he  might  sell  his  own 
place. 

Sec.  322.  A  broker  can  sometimes  organize  a  building  tri- 
umvirate consisting  of  a  banker,  a  lumber  dealer  and  the  broker, 
and  these  three  can  operate  together  to  very  good  advantage, 
either  as  partners  or  through  a  corporation  created  for  the  pur- 
pose. The  banker  supplies  the  money,  the  lumber  dealer  the 
building  materials,  and  the  broker  attends  to  the  erection  and  sale 
of  the  houses. 

Sec.  323.  An  energetic  and  resourceful  broker  can  always 
find  avenues  of  profit  in  which  to  direct  his  talents. 

Sec.  324.  Where  a  city  undergoes  a  great  change  in  the  way 
of  structural  improvement  within  a  short  time,  or  where  fire, 
earthquake  or  tornado  leave  structures  in  a  dilapidated  condition, 
the  removal  or  razing  of  old  buildings  to  make  room  for  new  ones 
becomes  a  business  of  itself — the  business  of  wrecking,  and  is 
carried  on  by  men  or  corporations  known  as  "wreckers."  Stately 


68  R£AL  ESTATE  SELF-TAUGHT 

piles  that  were  once  pointed  to  with  pride  by  the  early  inhabit- 
ants are  razed  to  the  ground  without  exciting  more  than  a  passing 
comment  from  the  bustling  humanity  of  our  later  days.  There  is 
method  in  the  seeming  madness  of  the  wrecker,  and  the  wrecking 
of  buildings  has  grown  of  itself  into  an  important  industry.  The 
process  of  demolition  is  not,  however,  a  simple  one  by  any  means. 
Every  brick  and  stone  must  be  preserved ;  every  board  or  piece  of 
timber  must  be  carefully  laid  aside ;  every  iron  brace,  and  iron  and 
lead  piping,  the  tin  from  the  roof  and  the  window  glass  must  be 
saved.  These  all  have  a  value  and  many  new  buildings  are  partly 
constructed  out  of  the  material  saved  by  the  wrecker.  In  the 
event  the  wrecker  is  also  in  the  building  or  lumber  business,  as  is 
often  the  case,  he  can  himself  utilize  the  dismantled  material  to 
good  advantage.  When  the  wrecker  is  asked  to  make  a  bid  for 
the  demolition  of  a  building,  he  first  goes  carefully  over  the  entire 
structure  for  the  purpose  of  ascertaining  how  much  of  the  ma- 
terial may  be  saved  and  used  again;  he  makes  notes  as  to  the 
construction  of  the  building  and  estimates  as  to  the  quantity  of 
lumber,  brick,  stone,  sash,  doors,  iron  and  lead  piping,  windows  and 
window  glass  and  of  everything  he  calls  "salvage."  From  these 
notes  and  estimates  lie  figures  out  what  the  cost  of  razing  the 
building  will  be,  and  in  nine  cases  out  of  ten,  he  makes  the  owner 
an  offer  for  the  building  outright,  as  it  stands.  In  any  building 
that  is  demolished,  there  is  considerable  waste,  and  only  an  expert 
can  tell  what  will  be  realized  from  the  salvage.  The  man  in  charge 
of  the  job  has  prices  on  all  of  the  salvage  material  and  he  sells  as 
much  of  it  as  possible  on  the  ground.  The  portion  not  sold  is  re- 
moved to  the  wrecker's  yards.  In  most  cases  the  destruction  com- 
mences at  the  roof  and  proceeds  downward,  for  the  purpose  of 
saving  material;  but  where  the  material  is  of  little  value,  the 
foundations  are  jerked  out  and  the  structure  allowed  to  collapse. 


ESTATE  SELF-TAUGHT  69 


LESSON  XII. 

OF  SPECULATING  AND  SYNDICATING. 

In  this  connection,  study  first  "How  and  Where  to  Buy,"  Sees. 
35  to  60,  inclusive,  pages  15  to  30,  inclusive,  of  Text  Book.  Also 
"Booms  and  Panics,"  Sees.  158  to  163,  inclusive,  pages  202  to  208 
of  Text  Book.  Persons  who  desire  to  pursue  the  subject  of  City 
investments  further  than  explained  in  this  course,  should  procure 
a  copy  of  "Principles  of  City  Land  Values,"  by  Richard  M.  Kurd. 

Sec.  324.  The  laws  of  speculation  are  not  well  understood; 
in  fact,  they  may  be  considered  as  not  well  established. 

Sec.  325.  There  is  a  wide  and  essential  difference  between 
merchandising  and  speculation,  although  these  two  things  are  apt 
to  be  confounded  together  in  theory  and  practice.  A  merchant 
or  storekeeper  has  customers  upon  whom  he  must  always  be  ready 
to  attend,  and  he  depends  upon  small  but  regular  gains.  A  specu- 
lator has  no  customers  and  he  relies  on  sudden  and  eccentric  en- 
richment. 

Sec.  326.  To  the  successful  speculator,  three  things  are  es- 
sential— time,  capital  and  courage,  and  these  three  are  of  little 
value  without  a  fourth,  and  that  is  judgment.  As  shown  in  Section 
36,  page  15,  of  Text  Book,  judgment  is  that  faculty  of  the  mind 
which,  more  than  any  other,  distinguishes  one  man  from  another. 
The  successive  mental  states  through  which  the  mind  passes  in  ar- 
riving at  judgment  are  set  forth  in  the  following  section. 

Sec.  327.  (a)  Judging  involves  materials  for  judgment 
ready  to  hand,  and  a  process  of  reflecting  on  these,  in  order  to  see 
to  what  result  they  point.  The  materials  are  supplied  by  personal 
experience  or  by  the  words  or  testimony  of  others.  Judgment 
rests  largely  on  one's  own  experience  and  cannot  be  accurately 
exercised  until  the  mind  has  long  been  storing  up  materials  for  it 
by  unbiased  observation  and  reflection. 


70  REAL  ESTATE  SELF-TAUGHT 

(b)  To  come  to  a  sound  decision  on  a  matter  of  any  diffi- 
culty, such  as  the  prospective  value  of  a  parcel  of  real  estate, 
implies  that  the  mind  rejects  what  is  irrelevant,  steadily  keeps 
in  view  all  the  relevant  facts,  and  weighs  well  the  bearing  of 
each  fact  on  the  case. 

(c)  Judgment,  to  be  perfect,  must  be  clear  and  accurate,  and 
be   exercised   with   reasonable   promptness.     Judgments   formed 
under  the  influence  of  strong  emotion  are  in  general  characterized 
by  vagueness  and  exaggeration.     One  must  not  passively  adopt 
the  views  of  others  without  seeking  to  make  them  his  own  by  per- 
sonal observation  and  reflection. 

(d)  An  accurate  judgment  is  one  which  corresponds  pre- 
cisely to  the  realities  presented  and  which  faithfully  expresses  the 
relation  of  things. 

(e)  A  certain  degree  of  promptness  in  decision  is  a  condition 
of  a  good  faculty  of  judging.    A  mind  drawn  hither  and  thither 
by  conflicting  tendencies,  and  unable  to  master  these,  is  weak  in 
judgment.     (Sully.) 

(/)  It  will  be  observed  that  men  of  good  judgment  usually 
decide  promptly  after  coming  into  possession  of  all  the  facts. 

(g)  A  man's  judgment  concerning  real  estate  may  be  ex- 
cellent and  yet  be  suspended  or  be  not  exercised,  for  any  one  of 
these  reasons: 

1 i )  Because  of  being  completely  occupied  with  other  matters ; 

(2)  Because  of  unpreparedness ;  i.  e.,  the  lack,  at  the  time, 
of  funds  with  which  to  take  advantage  of  the  opportunity ; 

(3)  Because  of  prejudice;  that  is,  an  unwarranted  dislike  to 
a  certain  locality. 

Sec.  328.  All  speculation  has  reference  to  a  future  and  the 
question  of  time  is  always  involved.  Results  are  hardly  ever 
immediate;  time  is  required  in  which  to  bring  about  changed 
conditions.  A  speculator  must  have  some  capital,  or  at  least  a 
small  portion  of  capital  and  a  large  portion  of  credit,  or  the  co- 
operation of  those  who  have  both  capital  and  credit.  The  specu- 


ESTATE  SELF  -TAUGHT  71 

lator  must  have  nerve  and  confidence ;  he  must  not  keep  the  nickel 
so  close  to  his  eye  that  he  cannot  see  the  dollar  beyond. 

Sec.  329.  A  merchant  must  be  active;  a  speculator  must  be 
patient.  Ordinarily,  a  speculator  can  only  be  watchful  and  bide 
his  time,  as  the  changes  which  are  about  to  occur  and  from  which 
he  anticiaptes  good  fortune  may  be  entirely  beyond  his  control, 
and  may  be  happening  thousands  of  miles  distant.  In  real  estate 
speculation,  however,  these  changes  are  confined  to  a  circum- 
scribed area  and  their  speed  may  be  accelerated  by  "booming" 
and  advertising  on  the  part  of  the  speculator.  There  is  a  proper 
time  to  buy  and  a  proper  time  to  sell,  and  decisive  action  must  be 
taken  before  the  turn  of  the  tide. 

Sec.  330.  In  speculating  in  a  commodity,  such  as  wheat  or 
cotton,  the  speculator  studies  statistics,  and  takes  note  of  great 
political  and  commercial  changes.  After  he  has  ascertained  the 
average  price  for  a  number  of  years  on  a  particular  commodity, 
exclusive  of  extreme  cases,  he  buys  when  the  price  has  fallen  below 
that  average. 

Sec.  331.  Speculation  is  an  exception  in  business,  arising  out 
of  derangements  of  trade,  or  out  of  the  impossibility,  or  seeming 
impossibility,  of  adjusting  the  supply  to  the  demand.  Speculation 
has  a  tendency  to  readjust  trade,  as,  when  prices  are  low,  every 
purchase  that  is  made  has  a  tendency  to  raise  the  price.  Trade 
is  steady  and  uniform  and  can  be  carried  on  at  all  times ;  specu- 
lation can  be  conducted  only  occasionally  and  when  opportunity 
offers.  Trade  is  certain;  speculation  unstable. 

Sec.  332.  Let  it  be  understood  that  speculation  may  be  di- 
rected to  any  property  or  article  which  is,  or  is  likely  to  be, 
plentiful  or  scarce,  or  may  be  directed  to  a  variety  of  properties  or 
articles,  so  that  the  speculator  may  have  under  way  at  one  time 
the  beginning  of  one  speculation  by  purchase  and  the  ending  of 
another  speculation  by  sale,  and  the  irregularity  which  is  one  of 
the  characteristics  of  speculation  can  in  this  way  be  turned  into 
regularity.  As  considerable  time  is  required  to  mature  any  one 


72  REAL  ESTATE  SELF-TAUGHT 

speculation,  the  wise  speculator  does  not  invest  all  of  his  disposable 
means  in  any  one  venture,  but  in  several  ventures,  at  various 
times,  so  that  they  are  in  different  stages,  some  commencing, 
others  terminating.  He  thus  reduces  speculation  to  the  nature  of 
a  regular  trade  and  makes  it  more  uniform  and  safe.  In  real 
estate  speculation,  this  uniformity  is  in  a  measure  secured  by  tak- 
ing options,  but  these  are  only  of  value  when  there  is  great 
activity  and  they  must  be  taken  before  prices  rise  too  high. 

Sec.  333.  To  buy  when  prices  are  low,  and  to  sell  when  prices 
are  high,  is  most  consistent  with  reason ;  but  the  temptation  is  to 
speculate  in  high  prices  with  the  expectation  of  their  rising  still 
higher.  While  there  is  often  large  gains  in  speculating  at  high 
prices,  there  is  also  great  risk,  and  the  property  or  article  must 
be  disposed  of  speedily.  The  last  purchaser  will  be  unable  to  sell 
or  must  sell  at  a  loss. 

Sec.  334.  The  speculator  has  little  to  fear  from  competition, 
for  ''he  who  has  the  folly  of  mankind  for  an  inheritance  has  a 
plentiful  estate."  The  great  object  of  speculation  is  to  substitute 
sagacity  for  toil  and  foresight  for  stupidity,  and  there  are  only 
a  few  men  who  are  fitted  by  nature  and  training  for  the  role  of 
the  speculator. 

Sec.  335.  (Part  of  the  foregoing  is  adapted  from  a  paper  by 
a  merchant  of  Boston,  quoted  in  Freedley's  Treatise  on  Business.) 

Sec.  336.  The  word  speculation,  as  generally  used,  means 
the  investing  of  money  at  the  risk  of  loss,  on  a  chance  of  unusual 
gain,  and  is  characterized  by  a  strenuous  endeavor  to  penetrate 
the  riddle  of  chance  and  to  discover  some  clew  by  which  to  read 
the  future.  An  absolute  distinction  cannot  be  made  between 
speculation  and  gambling,  although  the  latter  has  only  the  evils 
and  none  of  the  virtues  of  speculation.  Gambling  throws  patient 
industry  to  the  winds,  fascinates  those  who  engage  in  it  by  an 
unending  series  of  shallow  uncertainties  and  thoughtless  surprises 
fit  to  tickle  the  feeble  wits  of  savages  and  degenerate  types  of  the 
human  family. 


ESTATE  SELF-TAUGHT  73 

Sec.  337.  The  speculator  rarely  realizes  the  full  extent  of  his 
anticipations.  The  future  is  uncertain,  and  his  beliefs  in  regard 
to  what  it  holds  in  store  for  him  are  likely  to  be  formed  according 
to  his  most  favorable  desires.  The  most  brilliant  good  fortune 
which  may  result  from  the  operations  of  a  speculator  generally 
fall  below  his  anticipations,  when  the  operations  are  reduced  to 
figures.  It  appears  that  the  imagination  gets,  as  it  were,  diseased 
by  feeding  on  the  contemplation  of  very  rapid  gains;  and  that 
whatever  may  be  the  reality  of  a  hypothetical  gain,  the  mind  gets 
bewildered  and  fails  to  estimate,  as  an  element  of  loss,  the  sur- 
rounding husks  in  which  the  fruit  is  enclosed.  (Jones'  Economic 
Crises,  and  Cramp's  Theory  of  Stock  Exchange  Speculation.) 

Sec.  338.  The  four  chief  causes  contributing  to  the  present 
prevailing  mania  for  riches  are  set  down  by  Prof.  Taussig  as  the 
following:  Love  of  comfort,  desire  for  distinction,  the  impulse 
to  continue  in  active  life,  and  the  passion  for  power. 

Sec.  339.  Some  one  may  inquire :  "What  is  value,  and  how 
am  I  to  get  acquainted  with  'good  values  ?' "  Value  is  the  desir- 
ability, worth  or  utility  of  anything.  The  president  of  a  bank, 
when  asked  by  a  young  clerk  how  to  distinguish  bad  bills  from 
good  ones,  said:  "Get  acquainted  with  good  bills  and  you  will 
recognize  the  bad  ones  at  sight."  And  so  the  investor,  in  buying, 
should  study  what  elements  constitute  good  values  and  he  wil! 
instinctively  avoid  bad  values.  A  person  who  is  termed  a  shrewd 
buyer  is  one  who  really  knows  values — whose  buying  instinct  or 
ability  has  been  developed  by  a  careful  study  of  the  real  estate 
market. 

Sec.  340.  There  is  no  better  investment  than  real  property 
in  growing  cities.  The  arguments  in  favor  of  business  property 
as  an  investment  are  well  set  forth  in  a  booklet  issued  by  the 
Trustee  Company  of  Los  Angeles,  as  follows:  The  best  invest- 
ment should  possess  the  following  elements,  viz: 

1.  It  should  be  safe. 

2.  It  should  have  a  satisfactory  earning  power. 


74  REAL  ESTATE  SELF-TAUGHT 

3.  It  should  have  an  increasing  value. 

4.  It  should  not  be  subject  to  depreciation  in  earning  power. 

5.  It  should  be  easily  convertible  into  cash. 

6.  It  should  be  free  from  care  and  expense. 

Every  investment  should  be  tested  in  the  light  of  the  above 
elements,  to  determine  whether  or  not  it  is  the  best.  No  invest- 
ment possesses  so  many  of  these  elements  as  business  property, 
because : 

1.  In  a  growing  city,  investments  in  centrally  located  business 
property  are  absolutely  safe. 

2.  The  earning  power  is  larger  than  in  any  other  safe  in- 
vestment. 

3.  There  is  a  very  large  increasing  value  in  business  property. 

4.  Well  located  business  property,  properly  improved,  in  a 
live  city,  is  not  subject  to  depreciation.    Any  depreciation  of  per- 
manent buildings  is  small,  and  is  more  than  balanced  by  the  large 
appreciation  of  the  ground  value.     In  such  investmetns  the  earn- 
ing power  increases  yearly. 

5.  In  large  cities  there  is  a  standard  of  values  in  the  business 
section,  which  enables  an  owner  to  convert  business  property  into 
cash  at  its  reasonable  market  value.    However,  it  requires  a  con- 
siderable length  of  time  to  find  a  purchaser,  on  account  of  the 
magnitude  of  such  transactions  and  the  large  amount  of  capital 
required  to  handle  them. 

6.  Business  property  is  subject  to  the  usual  care,  trouble  and 
expense  incident  to  the  management  of  all  real  property,  in  deal- 
ing with   tenants,   paying  taxes,    providing    insurance,    making 
repairs,  etc. 

Sec.  341.  To  enable  an  investor,  whether  his  capital  be  large 
or  small,  to  invest  in  business  property,  a  new  method  has  been 
devised  whereby  a  corporation  purchases  a  piece  of  business  prop- 
erty, improves  it,  leases  it,  and  divides  the  cost  of  the  ground  and 
building  into  a  definite  number  of  units,  which  are  represented 
by  an  equal  number  of  certified  investment  bonds.  These  bonds 


ESTATE  SELF-TAUGHT  75 

are  secured  by  a  deed  of  trust  on  the  property,  and  the  owners 
of  the  bonds  receive  interest  on  their  investment  at  the  rate  of 
say  5  per  cent  per  annum,  payable  quarterly  or  semi-annually,  and 
also  two-thirds  of  the  surplus  net  earnings,  the  remaining  one- 
third  of  the  net  surplus  being  retained  by  the  company  as  compen- 
sation for  its  services  in  caring  for  the  property.  These  invest- 
ment bonds  are  not  subject  to  taxation,  and  can  be  registered, 
transferred  at  will,  and  used  as  collateral  security.  The  company 
assumes  all  care  and  trouble  incident  to  the  management  of  the 
property. 

Sec.  342.  Syndicating  properties,  as  the  phrase  is  commonly 
understood  with  reference  to  real  estate  deals,  is  done  by  agents 
obtaining  options  for  a  certain  length  of  time  on  certain  proper- 
ties and  then  unloading  such  properties  at  a  higher  figure,  before 
the  options  expire,  on  to  an  aggregation  of  individuals  called  a 
syndicate.  Agents  work  the  syndicate  proposition  in  this  way: 
Having  secured  options  from  some  of  their  friends,  probably 
without  consideration,  on  property  in  a  district  in  which  great 
improvements  in  the  building  line  are  to  be  made  by  somebody 
in  the  near  future,  they  go  to  others  of  their  acquaintance  who  are 
inclined  to  speculate  in  real  estate,  and  state  that  they  are  forming 
a  syndicate  to  take  over  the  properties  at  a  certain  figure  (gener- 
ally at  a  price  that  will  allow  the  agent  a  handsome  commission) 
and  descant  on  the  profits  that  can  be  made  when  the  proposed 
improvements  materialize.  This  might  be  very  well  if  the  agents 
would  make  and  maintain  the  same  price  to  all  of  the  members  of 
the  proposed  syndicate;  but  unfortunately,  like  a  stock  proposi- 
tion, there  are  ground-floor,  basement  and  sub-basement  prices, 
and  the  man  who  has  the  hardest  head  and  the  most  money  gets 
the  sub-basement  price,  and  the  fellow  with  the  least  money  gets 
the  ground-floor  price,  and  he  is  told  that  he  is  getting  a  good 
run  (but  not  to  the  sub-basement)  for  his  money.  Eventually,  the 
man  who  doesn't  get  the  "square  deal"  finds  it  out,  and  he  has  less 
faith  than  ever  in  human  nature  and  none  at  all  in  syndicates. 


76  REAL  ESTATE  SELF-TAUGHT 

Sec.  343.  Usually,  there  are  half  a  dozen  or  more  persons  in 
the  syndicate,  and  it  is  not  feasible  to  take  the  title  to  the  syndi- 
cate properties  in  the  names  of  all  of  them ;  neither  is  it  advisable 
to  have  the  properties  conveyed  to  a  third  person  in  trust  for  the 
members  of  the  syndicate ;  the  best  plan  is  to  have  the  properties 
conveyed  at  once  to  a  trust  corporation,  authorized  to  execute 
trusts  of  the  kind,  by  a  deed  to  be  executed  by  the  owners,  and 
which  will  show  that  the  properties  are  conveyed  in  trust  to  the 
trust  company  for  the  syndicate,  naming  them.  The  trust  company- 
then  issues  a  written  instrument,  over  its  name  and  seal,  to  each  of 
the  members  of  the  syndicate,  setting  forth  the  terms  on  which 
the  trust  is  held.  Generally,  the  syndicate  members  agree  upon 
the  minimum  price  at  which  they  will  sell,  and  this  is  inserted  in 
the  last-named  instrument.  If  an  individual  held  the  properties 
as  trustee,  and  should  die  or  become  incapacitated,  or  if  one  of 
the  members  of  the  syndicate  should  die,  the  properties  might 
become  so  tied  up  that  they  could  not  be  handled  to  advantage 
within  the  time  in  which  it  was  desired  to  dispose  of  them.  Every 
member  of  a  syndicate  should  insist  that  these  matters  be  all 
worked  out  correctly  from  a  legal  standpoint  and  that  the  papers 
are  ready  for  execution  before  he  puts  up  his  money.  Some  sug- 
gestions in  this  regard  may  be  found  in  Form  No.  155,  wherein 
provision  is  made  for  a  syndicate  to  take  over  options  and  place 
a  tract  on  the  market.  The  executive  committee  therein  provided 
for  places  a  check  on  the  dictatorial  and  sometimes  unprofitable 
management  of  the  undertaking  by  one  individual. 

Sec.  344.  Oftentimes  another  syndicate  is  formed  to  purchase 
the  properties  of  the  first  syndicate  at  a  considerable  advance. 
Where  fancy  profits  are  thus  made  by  one  set  of  men  at  the  ex- 
pense of  another,  there  is  great  danger  that  properties  will  be 
forced  to  a  price  far  beyond  their  real  value,  and  the  last  pur- 
chasers will  have  to  charge  a  part  of  the  purchase  price  to  un- 
warranted enthusiasm,  and  simply  wait  until  the  march  of  events 
icstores  the  properties  to  their  true  value.  Whenever  any  property 


ESTATE  SELF-TAUGHT  77 

has  reached  a  price  where,  if  improved,  it  will  not  return  the  owner 
a  fair  rate  of  interest  on  the  amount  invested,  it  has  an  inflated 
value. 

Sec.  345.  Syndicates  operating  in  large  cities  and  offering  to 
the  public  investment  certificates  or  bonds  based  on  land  and 
buildings  owned  or  controlled  by  such  syndicates,  are  in  reality 
borrowing  money  from  the  public  for  the  carrying  on  of  their 
business,  the  control  and  management  of  the  business  being  en- 
tirely in  the  hands  of  the  syndicate. 


78  REAL  ESTATE  SELF-TAUGHT 


LESSON  XIII. 

OF  LOANS,  MORTGAGES  AND  TAXES. 

Section  346.  Study,  first,  Section  93  to  108,  inclusive,  and  ac- 
companying forms,  pages  75  to  95,  inclusive,  of  Text  Book ;  also 
Section  123,  pages  102  to  105,  inclusive. 

Sec.  347.  Loans  are  of  two  kinds,  flat  and  installment.  A 
flat  loan  is  made  for  a  certain  term  with  the  entire  principal  re- 
payable in  one  sum.  Installment  loans  are  payable  at  a  certain 
sum  per  month  or  quarter,  both  principal  and  interest,  for  a  cer- 
tain time  which  will  discharge  both  principal  and  interest.  In- 
stallment loans  are  an  accommodation  to  borrowers  with  limited 
but  regular  salaries,  and  to  whom  the  accumulation  of  a  large  sum 
to  pay  a  flat  loan  at  maturity  would  be  out  of  the  question.  In- 
terest on  installment  payments  may  be  figured  in  several  ways, 
and  the  two  following  examples  illustrate  the  yearly,  and  the 
monthly,  method. 

(a)  Yearly  Method.     A  house  and  lot  are  sold  for  say  $4,500. 
with  a  cash  payment  of  $450.    ( 10%  ) ,  the  remainder  of  $4,050  to 
be  paid  at  the  rate  of  $45  per  month,  aggregating  $540  per  an- 
num.    The  interest  on  $4,050  at  6%  amounts  to  $243  per  year, 
and  this,  deducted  from  the  payment  of  $540,  leaves  $297  to  be 
applied  on  the  principal,  which  is  thereby  reduced  to  $3,753,  and 
this  amount  constitutes  the  principal  on  which  interest  is  figured 
for  the  second  year,  and  so  on. 

(b)  Monthly  Method.    House  and  lot  are  sold  for  $4,500,  as 
above,  with  a  cash  payment  of  $450,  leaving  a  balance  of  $4,050. 
Monthly  payments,  $45  each;  interest  at  6%   for  one  month  on 
$4,050  amounts  to  $20.25 ;  this  latter  deducted  from  the  monthly 
payment,  leaves  $24.75  to  be  applied  to  reducing  the  principal, 
leaving  $4,025.25  as  the  principal  for  the  next  month ;  interest  on 
same  for  one  month  at  6%  equals  $20.13;  this  latter,  deducted 


ESTATE  SELF-TAUGHT  79 

from  $45,  leaves  $24.87  to  be  applied  to  reduction  of  principal, 
and  so  on.  The  latter  plan  is  more  in  favor  of  the  purchaser  than 
the  yearly  method,  as,  by  the  monthly  method,  he  receives  full 
benefit  of  interest  upon  his  monthly  installments  as  paid,  and, 
where  the  installments  cover  a  number  of  years,  the  saving  in  in- 
terest by  the  monthly-credit  method  is  considerable.  Persons  or 
corporations  doing  an  extensive  installment  business  should  be 
provided  with  tables  of  compound  interest  and  annuities,  and  in 
some  instances  it  is  necessary  to  resort  to  the  use  of  logarithms, 
in  order  to  work  a  ready  solution  of  problems  relating  to  the  num- 
ber of  equal  monthly  installments  necessary  to  liquidate  a  given 
principal,  with  interest  credited  at  stated  intervals,  and  excess 
interest  applied  to  reduction  of  principal,  as  above  set  forth. 

Sec.  348.  Where  the  rebate  agreement  is  given  in  connection 
with  a  flat  loan,  as  explained  in  Section  123,  the  borrower  pays 
the  interest  at  the  net  rate ;  thus,  if  the  rate  in  the  note  calls  for  9 
per  cent,  and  rebate  agreement  is  given  for  3  per  cent,  the  bor- 
rower calculates  and  pays  his  interest  at  6  per  cent,  and  pays  the 
taxes  on  the  equity  of  both  mortgagor  and  mortgagee.  The  laws 
of  California  are  peculiar  in  this  regard. 

Sec.  349.  In  every  community  there  are  people  who  have 
mortgages  soon  to  mature,  or  who  wish  to  negotiate  loans  for 
erecting  buildings  and  other  purposes,  and  they  naturally  go  to  the 
real  estate  broker  to  assist  them  in  obtaining  money.  The  man 
who  wants  a  loan  generally  is  in  urgent  need  of  it,  and  no  great 
effort  is  required  in  order  to  do  business  with  him.  Brokers  who 
make  a  business  of  obtaining  loans  extensively  have  printed  ap- 
plication blanks  similar  to  Form  No.  27,  and  all  savings  banks 
and  building  and  loan  associations  have  such  blanks.  These 
blanks  place  the  matter  of  the  loan  before  the  lender  in  shape  to 
enable  him  to  act  upon  it  intelligently.  In  Sections  96  and  97 
of  the  Text  Book  the  procedure  in  obtaining  a  loan  from  a  savings 
bank  or  building  and  loan  association  is  outlined,  and  the  real 
estate  broker  should  follow  a  similar  course  in  obtaining  a  loan 


8O  REAL  ESTATE  SELF-TAUGHT 

from  a  private  individual,  and  he  should  particularly  protect  the 
lender  in  the  matter  of  seeing  that  all  of  the  papers  (mortgage, 
promissory  note,  or  trust  deed  and  promissory  note,  and  abstract 
of  title  or  certificate  of  title)  are  in  proper  legal  form  and  suffi- 
cient in  every  respect. 

Sec.  350.  The  best  plan  in  every  instance,  even  in  the  case  of 
individuals,  is  for  the  broker  to  have  the  money  passed  through 
an  escrow,  either  with  a  title  company  or  with  a  bank.  The  lender 
deposits  his  -money  with  the  escrow-holder,  with  instructions  that 
it  be  paid  over  to  the  borrower  after  the  mortgage  has  been  exe- 
cuted and  filed  for  record,  and  after  the  certificate  has  been  brought 
down,  showing  the  title  to  the  premises  vested  in  the  borrower, 
free  and  clear  of  incumbrances,  except  the  mortgage  and  possibly 
taxes  assessed  but  not  paid.  The  lender  and  the  broker,  or  the 
broker  in  behalf  of  the  lender,  examine  the  papers  and  see  that 
everything  is  in  proper  shape  before  the  money  is  paid  to  the 
borrower. 

Sec.  351.  The  loans  made  by  savings  banks  and  building  and 
loan  associations  are,  as  a  rule,  first  liens  on  the  premises,  and 
the  broker  should  have  it  distinctly  understood  by  all  the  parties, 
in  the  case  of  individuals,  that  the  loan  is  to  be  a  first  lien,  unless, 
as  sometimes  happens,  a  second  mortgage  is  what  is  to  be  given. 
Where  a  party  accepts  a  second  mortgage,  he  generally  intends 
to  hold  it,  as  there  is  difficulty  in  negotiating  it. 

Sec.  352.  When  an  application  for  a  loan  is  presented,  the 
broker  should  examine  the  property,  unless  he  is  already  familiar 
with  it,  and  pass  judgment  upon  it.  If  there  is  anything  con- 
nected with  the  transaction  that,  in  the  opinion  of  the  broker,  would 
cause  the  application  for  a  loan  to  be  rejected,  the  broker  will  do 
well  to  dismiss  the  matter  entirely,  as  if  he  presented  such  an 
application  to  the  lender,  particularly  if  it  be  a  bank,  the  lender  may 
form  an  unfavorable  opinion  of  his  business  ability  and  it  will  be 
more  difficult  for  him  to  obtain  other  loans  which  are  desirable. 
The  broker  should  ascertain  from  an  applicant  for  a  loan  whether 


ESTATE  SELF-TAUGHT  8 1 

or  not  such  applicant  has  already  applied  to  a  bank  or  elsewhere 
for  the  loan;  as  otherwise,  the  broker  may  be  wasting  energy  in 
going  over  the  same  ground.  The  broker's  commission  for  ob- 
taining a  loan  is  usually  I  per  cent  of  the  amount  of  the  loan,  pay- 
able at  the  time  the  loan  is  granted. 

Sec.  353.  If  the  broker  wishes  to  ascertain  who  has  money, 
he  should  advertise  in  the  "Want"  columns  of  the  newspapers,  and 
he  can  do  so  at  first  from  a  box  number,  as  some  people  who  have 
money  will  not  answer  advertisements  by  brokers  new  to  the 
business.  After  the  broker  has  become  well  established  and  has 
built  up  a  reputation  for  clear-cut  and  reliable  business  methods, 
he  can  advertise  directly  from  his  office  with  good  effect. 

Sec.  354.  Oftentimes  a  broker  can  facilitate  a  sale  by  securing 
a  loan  on  either  real  property  or  personal  property  for  one  or  the 
other  of  the  parties  to  the  deal. 

Sec.  355.  Loans  on  personal  property  are  secured  by  chattel 
mortgages  (form  No.  141).  The  property  remains  in  the  pos- 
session of  the  mortgagor.  In  some  cases,  where  the  personal 
property,  such  as  jewelry,  typewriters,  etc.,  are  loaned  on,  the 
property  is  given  into  the  possession  of  the  lender,  and  an  agree- 
ment of  conditional  sale  is  used  (Form  No.  92).  Any  personal 
property  which  is  capable  of  being  sold  or  assigned,  may  be  mort- 
gaged, even  if  such  property  has  only  a  prospective  existence,  such 
as  a  growing  crop.  The  foregoing  is  the  general  rule,  but  in  Cali- 
fornia the  personal  property  which  can  be  mortgaged  is  enumer- 
ated in  Section  2955  of  the  Civil  Code. 

Sec.  356.  A  mortgage  of  a  vessel  flying  the  United  States 
flag  must  be  recorded  in  the  office  of  the  Collector  of  Customs 
where  such  vessel  is  registered  or  enrolled. 

Sec.  357.     See  (6)  page  80  of  Text  Book,  as  to  execution  of 
personal  property  mortgages  in  California. 

Sec.  358.  A  mortgagee  of  personal  property,  when  the  debt 
to  secure  which  the  mortgage  was  executed  becomes  due,  may  fore- 


82  REAL  ESTATE  SELF-TAUGHT. 

close  the  mortgagor's  right  of  redemption  by  a  sale  of  the  property 
in  the  manner  and  upon  giving  the  notice  required  by  law. 

Sec.  359.  Personal  property  which  is  mortgaged  may  be  at- 
tached, in  California,  at  a  suit  of  the  creditor  of  the  mortgagor, 
but  before  taking  the  property  the  officer  must  tender  to  the  mort- 
gagee the  amount  of  the  mortgage  debt  and  interest,  or  must  de- 
posit the  amount  thereof  with  the  County  Clerk  or  Treasurer,  pay- 
able to  the  order  of  the  mortgagee. 


REAL  ESTATE  SELF-TAUGHT.  83 


LESSON  XIV. 

OF  LEARNING  HQW  TO  SAVE. 

Study  Sections  22  to  34,  inclusive,  of  Text  Book,  pages  n  to 
14,  inclusive. 


REAL  ESTATE  SELF-TAUGHT. 


LESSON  XV. 

OF  INCORPORATING  AND  PROMOTING. 

Sec.  360.  A  corporation  is  an  artificial  person  created  by 
a  number  of  natural  persons  complying  with  the  laws  of  some 
State  or  Territory  in  respect  to  incorporation.  A  corporation 
organized  by  persons  residing  in  California  to  do  business  in 
that  State  is  called  a  "domestic"  corporation,  and  a  corporation 
organized  under  the  laws  of  some  other  State,  such  as  New 
Jersey,  to  do  business  in  California,  is  called  a  "foreign"  cor- 
poration. The  laws  of  the  several  States  differ  with  regard  to 
incorporating,  and  the  laws  most  favorable  to  corporations  are 
those  of  New  Jersey,  Delaware,  West  Virginia,  South  Dakota, 
Arizona  and  Nevada. 

Sec.  361.  In  a  partnership,  each  partner  is  liable  for  the 
entire  debts  of  the  firm,  and  each  partner  may  contract  debts 
in  the  name  of  the  firm,  and  the  death,  incapacity  or  withdrawal 
of  a  partner  terminates  the  partnership.  By  incorporating,  the 
following  advantages  over  partnership  are  secured:  The  lia- 
bility of  a  stockholder  is  limited.  In  California,  for  instance, 
each  stockholder  in  a  domestic  incorporation  is  liable  for  such 
portion  of  the  debts  and  liabilities  of  the  corporation  contracted 
or  incurred  during  the  time  he  was  a  stockholder  as  the  amount 
of  his  stock  or  shares  bears  to  the  whole  of  the  subscribed  capital 
stock  of  the  corporation,  and  the  liability  of  the  stockholder  in 
a  foreign  corporation,  doing  business  in  California,  is  the  same 
as  that  of  a  stockholder  of  a  domestic  corporation.  By  incor- 
porating, continuity  of  existence  is  secured.  Each  of  the  stock- 
holders of  the  corporation  may  sell  his  shares  to  other  persons, 
who  will  be  substituted  in  the  places  of  the  original  stockholders, 
and  the  life  of  the  corporation  will  not  be  affected.  The  property, 


REAL  ESTATE  SEXF-T  AUGHT  85 

assets,  good  will  and  prestige  of  the  business  belong  to  the  cor- 
poration, and  not  to  its  component  parts,  the  stockholders.  A 
corporation  is  conducted,  managed  and  controlled  by  a  Board  of 
Directors,  and  the  combined  wisdom  and  counsel  of  three  or  more 
persons  are  thus  secured.  By  incorporating,  greater  undertakings 
may  be  exploited,  as  the  capital  therefor  may  be  more  easily 
obtained  by  means  of  sale  of  stock  and  bonds.  Furthermore,  the 
interests  of  the  several  stockholders  are  evidenced  by  certificates 
of  stock,  which  can  be  passed  from  hand  to  hand  by  endorse- 
ment and  delivery  and  be  used  as  collateral  security  in  borrowing 
money. 

Sec.  362.  In  creating  a  corporation,  the  incorporators  execute 
and  file  an  instrument  called  "Articles  of  Incorporation,"  or 
"Articles  of  Association."  These  articles  provide  for  the  name 
of  the  corporation,  the  purposes  for  which  it  is  created,  how 
long  it  is  to  continue,  the  principal  place  of  business,  the  names 
and  residences  of  the  Directors  chosen  for  the  first  year,  the 
amount  of  the  capital  stock,  the  par  value  and  number  of  shares 
into  which  it  is  divided,  and  the  amount  actually  subscribed,  and 
by  whom.  Blank  printed  forms  of  Articles  of  Association 
may  be  obtained  from  leading  stationers,  but  the  purposes  for 
which  the  Association  is  created  will  ordinarily  have  to  be  drafted 
by  trie  incorporators  themselves,  or  their  attorney.  The  follow- 
ing is  a  suitable  form  for  the  purposes  of  a  real  estate  company, 
and,  with  some  slight  variations,  will  answer  as  well  for  a  hotel 
company,  a  land  and  improvement  company,  or  an  investment 
company,  namely: 

(i)  To  buy,  purchase,  lease,  exchange  or  otherwise  acquire 
real  or  personal  property,  and  to  own,  hold,  sell,  lease,  rent, 
encumber  by  mortgage  or  deed  of  trust,  or  otherwise  deal  in, 
utilize  or  dispose  of  real  and  personal  property,  and  rights  and 
interests  in  any  such  property;  also  to  acquire,  improve,  con- 
struct, build,  own,  operate  and  maintain,  lease  and  sell  dwelling 
houses,  apartment  houses,  business  blocks,  store  rooms  and  other 


86 


REAL  ESTATE  SELF-TAUGHT 


structures  and  improvements;  also  to  maintain  and  conduct  a 
general  real  estate  agency  and  brokerage  business,  and  to  act  as 
agent,  broker  or  attorney-in-fact  for  any  person  or  corporation, 
and  to  do  any  and  all  things  incidental  or  auxiliary  thereto,  and 
to  the  same  extent  that  a  natural  person  might  or  could  do  in 
and  about  said  business. 

(2)  To  subscribe  for,  purchase  or  otherwise  acquire,  and 
to   own,   hold,   sell,   hypothecate  and   dispose   of   shares   of  the 
capital  stock  or  bonds  or  other  securities  or  obligations  of  any 
person  or  corporation,  and,  while  such  owner,  to  exercise  all  the 
rights  and  powers  incidental  thereto,  including  the  right  to  vote 
thereon. 

(3)  To  do  all  and  every  thing  necessary,  suitable  or  proper 
for  the  accomplishment  of  the  foregoing  purposes  or  which  the 
Board  of  Directors  of  the  corporation  may,  from  time  to  time, 
deem  to  be  conducive  or  expedient  for  the  protection  or  benefit 
of  the  corporation. 

Sec.  363.  The  bonded  indebtedness  which  a  corporation  can 
create  must  not  exceed  its  capital  stock,  and  such  indebtedness 
is  secured  by  deed  of  trust,  executed  to  the  corporation,  called  the 
"Trustor,"  in  favor  of  a  trust  company,  called  the  "Trustee," 
and  thereby  certain  property,  in  said  deed  described,  and  also  all 
property  thereafter  acquired  by  the  trustor  corporation,  arc  con- 
veyed in  trust  for  the  pro  rata  benefit  or  security  of  each  and 
every  person  01  corporation  that  then  or  thereafter  may  become 
the  owner  or  holder  of  the  bonds  secured  by  the  deed  of  trust. 
The  bonds  are  issued  in  various  denominations,  those  of  $500 
and  $1,000  each  being  the  most  popular,  and  run  for  terms 
ranging  from  ten  years  to  thirty  years.  Form  No.  138  is  an 
excellent  model  of  a  five  per  cent.,  sinking  fund,  2oyear  gold 
bond.  The  interest  is  evidenced  by  coupons  attached  to  the 
bonds,  and,  in  case  of  the  bond  just  mentioned,  there  are  forty 
such  coupons,  each  for  $25.00,  payable  semi-annually  for  twenty 
years,  amounting  in  all  to  $1,000.  Bonds  which  are  to  be  listed 


ESTATE  SELF-TAUGHT  87 

on  New  York  Stock  Exchange  must  be  steel  engraved,  and  the 
cost  of  engraving  on  steel  and  issuing  one  thousand  bonds  will 
average  $1.25  per  bond.  Lithographed  bonds  cost  much  less. 
In  issuing  bonds,  all  of  the  prerequisite  steps  and  proceedings, 
acts  and  things  essential  to  the  proper,  due  and  legal  authoriza- 
tion of  the  bonds  and  deed  of  trust,  must  be  taken  by  the  proper 
bodies,  officers  and  persons  in  due  and  proper  form,  time  and 
manner. 

Sec.  364.  A  deed  of  trust  must  provide  for  the  various  con- 
tingencies that  may  arise  while  the  trust  continues,  and  is  of 
necessity  a  lengthy  instrument.  It  is  customary  to  print  the 
deed  of  trust,  and  sometimes  a  printed  copy  is  executed  and 
recorded.  Where  personal  property  is  also  conveyed  by  a  deed 
of  trust,  the  instrument  has  to  be  recorded  in  three  books — in 
the  Book  of  Deeds  of  Trust,  Book  of  Mortgages,  and  Book  of 
Chattel  Mortgages — in  each  county  where  the  property  is  sit- 
uated. Printed  copies  of  the  deed  of  trust  and  sample  bonds 
are  furnished  to  brokers  and  bond  buyers.  The  initial  expenses 
for  attorney's  fees,  lithographing  or  engraving  of  bonds,  premium 
on  policies  of  title  insurance,  printing  and  recording  of  deed  of 
trust,  etc.,  are  considerable.  The  bonds  become  of  value  only 
after  they  have  been  certified  by  the  Trustee. 

Sec.  365.  A  sinking  fund  is  created  in  this  way :  The  Heed 
of  trust  contains  a  provision  whereby  the  Trustor,  or  corporation 
issuing  the  bonds,  agrees  to  pay  the  Trustee,  say  five  years  after 
the  date  of  the  deed,  a  sum  which  will  be  equivalent  to  five  per 
cent.,  par  value,  of  the  amount  of  the  bonds  then  certified  and 
outstanding.  In  lieu  of  cash,  payment  for  the  sinking  fund  may 
be  made  to  the  Trustee  by  the  Trustor  delivering  its  own  bonds, 
or  such  other  securities  as  may  be  approved  by  Trustee,  at  their 
face  value.  The  sinking  fund  is  specially  applied  to  the  redemp- 
tion of  the  bonds  secured  by  the  deed  of  trust,  on  or  before  their 
maturity.  In  case  payment  is  made  in  cash,  the  Trustee  must 
advertise,  inviting  for  bids  for  the  sale  to  it  of  a  sufficient  amount  of 


88  REAL  ESTATE  SELF-TAUGHT 

the  bonds  as  shall  be  necessary  to  the  investment  of  the  sinking 
fund  money  then  in  its  hands,  at  a  price  not  higher  than  a  four 
per  cent,  basis.  If  no  offers  are  received,  the  Trustee  may  buy 
the  bonds  in  the  open  market  on  the  same  basis ;  but  if  no  bonds 
can  be  obtained,  then  the  sinking  fund  payment  must  be  invested 
by  the  Truste  in  securities  satisfactory  to  the  Board  of  Directors 
of  the  Trustor,  and  all  income  from  such  securities  must  also  be 
reinvested  as  a  part  of  the  sinking  fund,  and  such  sinking  fund 
must  be  applied  to  the  purchase  of  bonds  whenever  they  may  be 
obtained  at  not  exceeding  a  four  per  cent,  basis.  As  purchased, 
the  bonds  and  coupons  are  cancelled  by  the  Trustee. 

Sec.  366.  A  prospector  is  an  individual  of  solitary  tendencies 
who  roams  the  hills  in  search  of  hidden  treasure.  When  he  finds 
good  indications  of  the  metal  he  is  seeking,  he  stakes  out  one  or 
more  mining  claims;  and  digs  holes  at  several  points  to  discover 
the  width  and  extent  of  the  ore.  This  is  a  prospect ;  some  people 
call  it  a  mine;  but  large  sums  of  money  must  be  expended  in 
development  work  and  for  machinery  before  a  prospect  becomes 
a  remunerative  mine. 

Sec.  367.  A  promoter  has  a  sanguine  temperament,  a  Brilliant 
imagination,  a  copious  flow  of  language,  and  no  money.  He  is 
generally  of  a  portly  build,  an  epicure  as  to  tastes,  correct  as  to 
attire,  and  can  behold  sky-scrapers  where  others  can  see  only 
three-story  blocks.  The  rough-and-ready  prospector  desires  to 
have  his  prospect  developed,  and  the  promotor  is  always  in  touch 
with  capital — at  least  he  says  he  is — and  so  the  prospector  and 
the  promotor  come  to  a  ready  understanding.  Wise  legislators, 
knowing  the  inherent  human  weakness  to  overstate  things,  have 
passed  laws,  in  some  of  the  States,  making  it  a  felony  for  any 
director,  officer  or  agent  of  a  corporation  to  knowingly  concur 
in  making,  publishing  or  posting  any  written  report,  exhibit  or 
statement,  prospectus  or  account  of  the  operations,  values,  busi- 
ness, profits,  expenditures  or  prospects  containing  any  material 
statement  which  is  false  or  which  has  a  tendency  to  produce  or 


REAL  ESTATE  SELF-TAUGHT  89 

give  to  the  stock  or  shares  of  the  corporation  a  greater  or  a  less 
apparent  or  market  value  than  they  really  possess. 

Sec.  368.  Nearly  every  mining  corporation  created  has  an 
authorized  capital  stock  of  at  least  $1,000,000,  divided  into  one 
million  shares  of  the  par  value  of  $i  each,  so  that  the  parties 
who  purchase  the  stock  will  think  they  are  receiving  a  good  many 
shares  for  their  money.  The  prospector  generally  receives  one- 
fourth  of  the  shares,  in  consideration  of  his  transferring  his 
prospect  or  "mine"  to  the  Company;  the  promoter  receives  one- 
half  of  the  shares  for  his  services,  and  the  remaining  one-fourth 
are  not  issued,  and  are  called  "Treasury  stock."  As  the  promotor 
has  no  money,  he  gets  a  few  of  his  friends,  who  have  some  money, 
to  advance  enough  to  pay  incorporation  fees,  in  consideration 
whereof  they  are  made  directors  and  are  given  some  of  the  pro- 
moter's stock.  The  treasury  stock  is  then  offered  to  the  public 
in  one  of  two  ways — for  cash,  or  on  installments,  as  per  Forms 
Nos.  139  and  140.  Two  hundred  and  fifty  thousand  shares  at 
five  cents  per  share  amounts  to  $12,500;  whereas,  to  convert  the 
right  kind  of  a  prospect  into  a  paying  mine  requires  sums  ranging 
from  $25,000  to  $100,000.  As  a  mining  expert  has  said :  "It  is 
necessary  for  one  to  investigate  closely  the  reliability  and  com- 
petency of  the  men  behind  the  enterprise  when  stock  is  offered 
for  sale,  and  where  and  how  the  stock  is  distributed,  for  what 
consideration  issued,  how  the  value  is  determined,  and  how  much 
will  be  required  to  'make  it  pay/  In  other  words,  if  it's  a 
$100,000  enterprise,  and  stock  is  selling  for  two  cents  a  share, 
and  provision  is  made  for  only  $8,000,  you  might  as  well  throw 
your  money  away  as  to  invest  in  such  an  enterprise.  Under  the 
best  of  management,  all  losses  cannot  be  eliminated,  for  mining 
is  a  business  requiring  the  highest  degree  of  technical  skill, 
including  a  thorough  knowledge  of  metallurgy,  chemistry,  me- 
chanics, civil  engineering,  assaying,  and  executive  ability  and 
integrity." 


90  REAL  ESTATE  SEI^-TAUGHT 

Sec.  369.  The  promoting  of  corporations  designed  to  render 
service  to  the  public,  such  as  telephone,  gas,  water  and  electric 
light  companies,  is  profitable  and  may  sometimes  be  financed 
without  the  investment  of  much  actual  money.  Such  a  company 
issues  bonds,  and  in  order  to  enlist  the  co-operation  of  bankers, 
offers  them  the  bonds  at  a  discount,  and  gives  gratis  to  the  banker 
a  certain  number  of  shares  of  stock  with  each  bond  he  purchases. 
Sometimes  the  banker  does  not  buy  the  bonds  outright  at  first, 
but  loans  money  on  them  as  collateral  security,  and  the  company 
is  thus  enabled  to  install  its  plant.  After  the  company  has  begun 
to  pay  dividends,  there  is  a  demand  for  the  stock,  and  the  Banker 
can  sell  his  at  so  much  clear  profit.  The  bonds  also  advance  in 
value  until  they  reach  par  or  above.  Such  a  corporation,  after 
having  obtained  valuable  franchises  from  some  city  or  county 
and  installed  an  expensive  plant,  holds  a  virtual  monopoly  of  the 
particular  service  it  is  rendering,  as  none  but  a  formidable  com- 
petitor can  enter  the  field  against  it. 


REAL  ESTATE  SELF-TAUGHT. 


LESSON  XVI. 

OF  BOOKKEEPING  FOR  THE  REAL  ESTATE  OFFICE. 

Sec.  370.  Bookkeeping  in  a  small  business  is  ordinarily  not 
well  conducted,  for  two  reasons:  First,  the  proprietor  does  not 
understand  the  principles  of  double-entry  sufficiently  well  to  put 
them  into  practice ;  and  second,  his  time  is  so  much  occupied  with 
other  matters  that  he  cannot  give  the  requisite  attention  to  keep- 
ing accounts  as  they  should  be  kept.  In  a  small  real  estate 
business  personal  accounts  are  kept  as  a  rule  by  single  entry;  a 
ledger  title,  such  as  John  Smith,  being  credited  with  the  rents 
collected  and  debited  with  water  rates,  commissions,  etc.,  and 
with  the  remainder  when  paid  in  cash,  thus  balancing  the  account 
to  a  certain  date. 

Sec.  371.  It  is  assumed  that  the  student  has  some  knowledge 
of  the  elementary  principles  of  bookkeeping  and  knows  that  assets 
are  things  belonging  to  a  person  or  corporation,  and  that  liabili- 
ties are  debts  owing  to  others  by  such  person  or  corporation. 

Sec.  372.  The  moneys  expended  in  carrying  on  a  business 
are  laid  out  for  two  purposes :  First,  to  acquire  additional  prop- 
erty, which,  in  the  judgment  of  the  proprietor,  is  necessary  to 
the  success  of  the  business,  and  such  expenditures  on  the  books 
of  account  are  termed  "Investment  Accounts;"  and  second,  to 
procure  things  of  no  permanent  value,  such  as  office  rent,  clerk 
hire,  etc.,  and  such  expenditures  on  said  books  are  termed  "E3t- 
pense  Accounts."  Thus,  the  owner  of  the  "Dennison  Block" 
would  have  on  his  books,  if  properly  kept,  two  or  three  accounts 
relating  to  that  parcel  of  property,  viz. :  ( I )  "Dennison  Block," 
a  debit  account,  representing  the  first  cost  of  the  ground  and 
building,  and  subsequent  additions  thereto.  In  entering  this  item 
in  the  ledger,  a  value  should  be  placed  on  the  land  and  a  value 


92  REAL  ESTATE  SELF-TAUGHT 

on  the  building,  and  so  entered  in  the  ledger,  the  two  amounts 
constituting  the  total  cost. 

(2)  "Dennison  Block  Expense,"  a  debit  account,  represent- 
ing use  and  services,  such  as  cost  of  elevator  service,  water  rent, 
light,  heat  and  supervision. 

(3)  "Dennison   Block  Earnings,"  a  credit   account,   repre- 
senting rentals  received  and  other  earnings,  such  as  money  com- 
ing in  for  steam  furnished  to  an  adjoining  building,  etc.     These 
last  two  accounts  could  be  included  in  one  account,  to  be  known 
as  "Dennison  Block  Earnings  and  Expenses." 

Sec.  373.  In  order  that  the  expenditures  may  be  properly 
segregated,  it  is  necessary  to  consider  the  nature  of  these  two 
accounts : 

(1)  Improvements   or  betterments   are  those   additions   to 
property  which  permanently  increase  its  value  or  earning  capac- 
ity; while 

(2)  Repairs  serve  merely  to  maintain  property  in  a  certain 
state  of  preservation  or  prevent  it  from  falling  into  decay.     The 
cost  of  adding  to  a  building  a  room  which  will  increase  the 
rentals,  would  be  an  investment ;  but  the  changing  of  the  construc- 
tion of  a  room,  without  any  increase  in  earning  capacity,  would 
be  an  expense.     In  both  cases,  the  total  cost  would  be  composed 
of  minor  items  of  labor  and  materials.     In  most  works  on  book- 
keeping the  distinction  between  Investment  Accounts  and  Expense 
Accounts  is  not  explained  at  all,  and  many  bookkeepers  do  not 
recognize  this  distinction  nor  understand  how  to  properly  segre- 
gate the  expenditures  above  mentioned. 

Sec.  374.  If  all  the  rooms  in  the  "Dennison  Block"  were 
rented  to  persons  other  than  the  owner,  he  naturally  would  credit 
all  the  rents  to  one  account.  If  he  occupied  one  room,  he  might 
overlook  crediting  rent  account  with  the  rent  of  that  room  and 
debiting  same  to  his  own  expense  account.  If  he  did  not  do  so, 
however,  rent  account  would  not  receive  credit  for  the  full  rental 
of  the  building. 


REAL  ESTATE  SELF-TAUGHT  93 

Sec.  375.  To  elucidate  the  matter  further:  Let  us  suppose 
that  the  Dennison  Building  cost  for  the  land,  $3,500,  and  for  the 
building,  $6,500,  a  total  of  $10,000,  and  that  the  rentals  for  one 
year  amounted  to  $1,500  and  the  expenses  to  $500.  The  net 
earnings  for  the  year  (nothing  written  off  for  depreciation)  would 
be  $1,000 ;  dividing  this  by  I  per  cent,  of  $10,000,  or  $100,  gives 
10  per  cent  as  the  rate  per  cent  of  earnings  for  the  year.  It  will 
readily  be  seen  that  if  the  book-keeper  had  charged  to  Investment 
any  item  which  should  have  been  charged  to  Expense,  or  vice 
versa,  no  accurate  results  would  be  reached.  Another  object  in 
always  treating  similar  items  in  like  manner  is  to  enable  the 
proprietor  to  make  correct  comparisons  of  one  period  of  time 
with  another,  as  shown  by  accurate  statements  for  each  of  such 
periods. 

Sec.  376.  For  a  small  business,  or  indeed  one  of  considerable 
magnitude,  columner  books  and  the  voucher  system  are  the  sim- 
plest and  the  best.  See  Forms  Nos.  162,  163  and  164.  Columner 
books  provide  a  means  of  checking  an  aggregate  of  debits  against 
an  aggregate  of  credits,  as  the  work  progresses ;  lessen  the  num- 
ber of  postings  in  a  marked  degree,  and  thereby  the  liability  to 
errors;  and,  where  provision  is  made  for  cash  columns,  admit 
of  the  complete  entry  of  any  transaction  being  made  at  one  time 
in  one  book,  instead  of  at  different  times  in  two  books.  Columner 
books,  with  debit  and  credit  columns  together  (not  with  debit 
columns  on  one  side  and  credit  columns  on  the  other,  as  shown  in 
form  No.  164),  may  be  obtained  from  stationers.  In  the  Cash- 
book  Journal  (Form  164),  accounts  for  which  no  columns  are 
provided  are  entered  in  "Sundry  Columns"  and  posted  from  there. 
This  book  can  be  used  either  with  or  without  vouchers.  No 
accounts  are  kept  with  parties  from  whom  purchases  are  made. 
Where  vouchers  are  used,  the  bills  for  purchases  are  inserted 
inside  the  voucher,  which  is  then  O.  K.'d  by  the  person  making 
the  purchase,  and,  after  the  extensions  are  verified,  the  voucher 
is  entered  in  the  Cash-book  Journal,  debited  to  the  accounts  to 


94  REAL  ESTATE  SELF-TAUGHT 

be  charged  and  credited  to  Voucher  Account.  When  paid,  a  debit 
therefor  is  made  to  Voucher  Account  and  a  credit  to  Cash.  The 
entered,  unpaid,  vouchers  on  hand  at  any  time  should  agree  with 
the  balance  of  the  voucher  account.  The  vouchers  secure  uni- 
formity in  size  for  filing  as  well  as  uniformity  in  treatment,  and 
are  numbered  and  filed  from  one  upward.  In  the  case  of  pay- 
rolls, one  voucher  is  sufficient,  with  as  many  receipts  within  as 
there  are  names  on  the  payroll.  The  check  numbers  and  thfc 
voucher  numbers  will  not  correspond.  The  vouchers  are  indexed 
for  ready  reference.  In  the  Cash-book  Journal  (Form  164)  all 
of  the  debits  are  on  one  page,  the  credits  on  the  other,  and  more 
debit  columns  are  provided  for  than  credits,  as  the  former  exceed 
the  latter. 

Sec.  377.  All  monies  received  should  be  deposited  in  bank, 
and  all  payments  made  by  check.  A  day  should  be  fixed — say 
about  the  tenth  of  each  month — on  which  to  pay  all  bills  of  the 
preceding  calendar  month. 

Sec.  378.  A  balance  sheet  is  a  statement  of  financial  exhibits, 
showing,  in  compact  form,  the  resources  and  liabilities  and  gains 
and  losses  of  a  business.  Form  No.  165  is  both  a  condensed 
trial  balance  and  a  balance  sheet.  In  any  business,  to  ascertain 
the  true  loss  and  gain,  an  inventory  must  be  taken,  and  so,  in  the 
real  estate  business,  any  real  or  personal  property  should  be  re- 
valued at  least  once  a  year  and  entered  on  the  books  to  account 
for  increment  or  depreciation.  A  trial  balance  should  be  taken 
once  a  month  and  a  balance  sheet  made  therefrom.  The  difference 
between  the  resource  and  liability  columns  shows  the  present 
worth  or  insolvency  of  the  business,  and  the  difference  between 
the  gain  and  loss  columns  the  net  loss  or  gain.  The  difference 
between  the  present  worth  and  the  net  investment,  on  closing  the 
books,  also  shows  net  gain  or  loss.  The  net  gain,  if  added  to,  or 
the  net  loss,  if  subtracted  from,  the  net  investment,  on  closing, 
will  show  the  present  worth. 


Real  Estate  Business 
Self -Taught 


COPYRIGHT,  1906,  BY  W.  A.  CARNEY. 


FORMS 


FORM  NO.  IOC-APPLICATION  TO  GOVERNOR  FOR  APPOINT- 
MENT AS  NOTARY  PUBLIC. 

Hon.  George  C.  Pardee, 

Governor  of  the  State  of  California, 
Sacramento,  Cal. 

SIR  :  I  hereby  make  application  for  appointment  as  Notary  Public 
in  and  for  the  County  of  Los  Angeles,  State  of  California.  I  am  a  citizen 
of  United  States  over  21  years  of  age,  and  would  respectfully  refer  you 
to  the  following  well-known  citizens  of  Los  Angeles,  Cal.,  as  to  my  fitness 
for  office,  character  and  integrity,  namely:  S.  W.  Lukens,  President  of 
the  American  National  Bank;  Hon.  D.  J.  Williams,  Judge  of  the  Superior 
Court,  Department  No.  2,  and  James  L.  Smith^,  President  of  the  Eldorado 
Mining  Company. 

Respectfully  yours, 

GEORGE  W.  BROWN. 
No.  132  South  Broadway, 

Los  Angeles,  Cal. 


FORM  NO.  loi— LETTER  TO  CUSTOMERS  UPON  OPENING  OF- 
FICE. 

DEAR  SIR  :  I  beg  leave  to  advise  you  that  I  have  recently  opened 
a  real  estate  office  at  No.  23  Mercantile  Place,  this  city.  Inasmuch  as  I 
have  just  completed  a  course  in  Real  Estate,  and  have  secured  an  appoint- 
ment as  Notary  Public,  I  feel  warranted  in  stating  that  any  business  in 
the  real  estate  line  intrusted  to  my  care  will  receive  intelligent  attention, 
and  I  assure  you  that  same  will  be  promptly  and  efficiently  executed.  I 
also  write  fire  insurance  in  behalf  of  several  of  the  most  responsible  fire 
insurance  companies  in  the  world.  Kindly  bear  in  mind  my  name  and  ad- 
dress (which,  for  more  convenient  reference,  you  will  find  on  the  en- 
closed business  card),  and  whenever  you  desire  the  services  of  a  Notary, 
wish  to  insure  your  premises,  or  desire  to  buy  or  sell  real  estate,  please 
favor  me  with  a  call,  and  greatly  oblige. 

Yours  truly, 


2  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.   102— ANNUAL  LETTER  TO  CUSTOMERS. 
FEDERAL  REALTY  CO., 

REAL  ESTATE  AND  INSURANCE, 
STOCKS  AND  BONDS. 

Los  ANGELES,  CAL.,  January  2,  1906. 
Geo.   M.  Jones,  Esq., 

Los  Angeles,   Cal. 

DEAR  SIR  :  This  personal  letter  is  intended  to  touch  upon  a  question 
of  vital  importance,  and  one  which  demands  your  serious  consideration — 
the  investment  of  your  capital  and  surplus  income. 

We  have  spent  many  years  in  this  community,  dealing  in  the  highest 
grades  of  investments,  and  in  making  a  study  of 'real  estate  and  securities 
and  matters  of  finance. 

Our  experience  enables  us  to  give  you  valuable  advice  and  assistance, 
and  we  invite  you  most  cordially  to  call  and  discuss  this  subject  with  us 
personally  and  confidentially,  it  being  thoroughly  understood  fthat  no 
obligation  whatever  rests  upon  you  to  do  business  with  us.  You  will  be 
welcome,  if  you  come  simply  for  an  exchange  of  ideas. 

We  shall  hope  to  have  the  pleasure  of  seeing  you  at  our  office  when 
vou  can  make  it  convenient  to  come;  or,  if  that  is  not  practicable,  we 
would  be  gratified  to  have  an  opportunity  of  opening  correspondence  with 
you  on  this  subject. 

As  a  careful  investor,  you  will  doubtless  be  interested  in  looking  over 
the  enclosed  list  of  securities,  which  we  are  enabled  to  offer  you. 

It  frequently  happens  that  we  have  a  block  of  especially  desirable 
bonds,  and  we  would  like  to  place  you  on  our  special  list  for  these  bargains 
from  time  to  time.  Mail  us  the  enclosed  postal  with  your  name  and  ad- 
dress, and  you  will  have  first  chance  at  our  best  offerings. 

With  best  wishes  for  the  New  Year,  we  are, 

Very  truly  yours, 

FEDERAL  REALTY  Co., 
By  W.  A.  CARNEY,  President. 


FORM  NO.  103— LETTER  TO  BROKERS,  OFFERING  PROPERTY. 

W.  A.  CARNEY,  GEO.  M.   SoRELLE, 

433  STIMSON  BLDG.  DEALERS  IN  1006  UNION  TRUST  BLDG. 

Home  434  INDUSTRIAL   SITES.  Home   1819 

Main  4054.  Main   8727 

Los  ANGELES,  CAL.,  May  16,  1906. 

DEAR  SIR:  We  would  respectfully  call  your  attention  to  the  list  of 
Industrial  Sites  herein  referred  to,  and  solicit  your  co-operation  in  the 
sale  of  the  same. 

Will  pay  commission  on  sales  as  stated  in  each  case. 

No.   i. 

The  S.  E.  corner  of  HUNTER  AND  MATEO,  fronting  100  ft.  oh  Mateo 
by  120  on  Hunter,  extending  back  to  a  2O-ft.  alley.  This  is  an  EX- 
CEPTIONALLY choice  corner. 

Price,    $6000 — Commission,    $200. 

No.  2. 

776  Hemlock  St.,<  having  a  frontage  on  Hemlock  of  100  ft.  by  -112%  ft.  in 
depth.  Present  income  $31  per  month.  This  property,  which  is 


REAL     ESTATE     SELF-TAUGHT  3 

within  one  block  of  where  the  GREAT  $1,000,000  UNION  DEPOT 
is  to  be  built;  adjoins  the  HUNTINGTON  PROPERTIES  on  the 
west,  and  has  a  spur  track  extending  up  to  the  property  line  in  the 
rear. 

Price,  $11,000 — Commission,  $350. 

No.  3. 

The  N.  E.  cor.  of  SANTA  FE  AVE.  and  PORTER  ST.,  fronting  210  ft. 
on  SANTA  FE  AVE.  by  140  ft.  in  depth  to  a  2O-ft.  alley,  along 
which  the  SALT  LAKE  RY.  recently  obtained  a  FRANCHISE  for 
a  spur  track.  There  are  situate  thereon  10  cottages,  having  a  monthly 
rental  INCOME  of  $100.  (Recently  we  sold  140x360  ft.  *>n  Porter 
St.,  diagonally  across  the  street  and  alley  to  the  RAND-McNALLY 
people,  who  intend  in  the  near  future  to  erect  a  substantial  WARE- 
HOUSE COVERING  THE  ENTIRE  PREMISES).  Terms  $0000 
cash,  $7000  in  3  years,  at  6%  interest  net. 
Price,  $15,000 — Regular  Commission. 

No.  4. 

McPHERSON  ST.  near  SANTA  FE  AVE.,  fronting  600  ft.  on  McPher- 
son,  by  140  ft.  in  depth  to  a  20- ft.  alley,  and  adjoins  the  Santa  Fe 
Right  of  Way  on  the  east.  This  property  is  within  one  block  of  the 
GREAT  STEEL  PLANT  to  be  erected  by  the  REPUBLIC  IRON 
WORKS ;  within  one  block  of  the  HAUSER  PACKING  COMPANY 
and  within  three  blocks  of  where  the  HUNTINGTON  interests  are 
to  erect  their  large  RAILWAY  TRANSFER  BARNS.  Reasonable 
terms. 

Price,  $18,000— Commission,  $500. 

All  of  these  properties  are  held  under  option  by   us,  and  we  abso- 
lutely guarantee  delivery. 

This  circular  letter  supersedes  all  previous  offers. 
Make  all  sales  subject  to  our  approval.      No  signs. 

Respectfully  yours, 

GEO.  M.  SoRELLE, 
W.  A.  CARNEY. 


FORM  NO.   104— LETTER  ENCLOSING  LISTING  BLANKS. 

DEAR  SIR  :  I  enclose  you  several  blanks  herewith.  Kindly  fill  out  and 
return  to  me  the  blank  or  blanks  suited  to  your  case,  and  I  will  en- 
deavor to  sell  or  exchange  your  property  for  you.  Give  me  your  best  price 
and  every  particular,  and  state  exactly  what  you  will  and  will  not  do.  I 
have  a  large  number  of  deals  under  way  at  all  times,  and  it  may  be  that 
I  can  make  a  sale  or  exchange  for  you  at  once.  Some  people  are  going 
East,  some  West,  some  North,  and  some  South.  Western  people  want 
to  go  East,  and  Eastern  people  want  to  go  West ;  Southern  people  want 
to  go  North,  and  Northern  people  want  to  go  South.  These  are  the  peo- 
ple I  want  to  help  on  their  way.  Let  me  hear  from  you  without  delay. 

Very  truly  yours, 


4  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  105— SALE  BLANK. 

DEAR  SIR:  I  have  for  sale  or  exchange  the  following  described  prop- 
erty: 

(State  all  particulars  and  description  above.) 

Situate  in  County,    State My  price  is My 

terms  are My  reasons  for  selling  are I  would  exchange  for. . . 

(State  here  in  what  section  you  want  property  or  business.) 

State  what  revenue  your  property  is  now  bringhrg  $ If  a  business, 

how  much  you  are  clearing  per  year  $ If  property  is  clear,,  so  state. . . 

If  not  how  much  of  a  debt  is  against  it 

You  may  sell  or  exchange  the  above-described  property,  and  if  same 
is  sold  or  exchanged  through  your  efforts,  I  will  pay  you  for  your  services 
the  sum  of  five  per  cent,  on  the  amount  I  accept  for  my  property. 

Very  truly  yours, 


FORM  NO.  106— NEW  LOCATION  BLANK. 

DEAR  SIR:      We  are  desirous  of  changing  our  location,  and     would 
like  to  hear  from  you  as  to  a  new  location  for  our  plant.      We  employ... 

people.     The  average  pay  of  each  is  $ per  week.     Our  pay-roll  is 

$ per  month.  Our  plant  is  run months  each  year.  We  manufac- 
ture   Our  annual  sales  amount  to  $ Our  product  goes  principally 

to We  now  use for  fuel.  We  could  use  natural  gas  to  advan- 
tage. Our  fuel  bill  will  approximate  $ per  month.  We  would  re- 
quire  acres  of  land.  Railroad  siding  is  needed.  We  would  need 

house  accommodations  for families,  who  would  pay  $ each 

per  month  in  rent,  on  the  average.  We  would  expect  the  following  in- 
ducements : Our  raw  material  comes  from and  we  have  ap- 
proximately  cars  coming  in  per  month,  and  our  shipments  will 

amount,  approximately  to cars  going  out  per  month. 

We  employ people,   16  years  old  and  upwards,  the  majority  of 

whom  we  would  expect  to  find  in  the  new  location. 

Very  truly  yours, 


FORM  NO.  107— INFORMATION  BLANK. 

DEAR  SIR:     I  have acres  or  ...  .lots  in  or  near  the  town  of. ... 

County  of State  of Population Railroads  . . Chief  in- 
dustries ....Town  is  growing.  ..  .New  houses  built  last  year....  I  want 
your  terms  for  a  lot  sale  on  commission..!  want  to  sell  (here  state  in  detail 
the  lots  or  acreage  you  have  for  sale,  describing  premises  fully).  I  have 

had  an  Auction  Lot  Sale If  so,  state  how  many  lots    were  sold 

Who  had  charge  of  the  sale? State  year  and  month  in  which  sale  was 

held Have  you  coal  or  oil  or  natural  gas? How  does  your  property 

He — level  or  otherwise? How  near  the    residence  section  is  it? 

How  many  feet  front  on  Road  or  Street? Do  you  think  a  Lot  Sale 

would  pay? Has  your  town  a  Board  of  Trade? Does  the  town 

want  factories? If  so,  what? Will  town  make  inducements? 

Give  Bank    References Is  your  property  clear  or  can  you  make  clear 

deed?   Give  address  of  good  attorney  in  your  city 

Very  truly  yours, 


REAL     ESTATE     SELF-TAUGHT  5 

FORM  108— SUGGESTIONS  AS  TO  BOND  CIRCULAR. 

BARNUM,  MERRILL  &  LAME, 

Suite  534  Mason    Building,  Los  Angeles,  California. 

Dealers  in  Municipal,  Railroad,  Corporation  Bonds. 

WESTERN   CORRESPONDENTS,  LAWRENCE   BARNUM   &   CO. 

Philadelphia.  New  York.  Boston. 

We  offer  the  following    securities  subject  to  sale  and  change  in  price: 

Security  and  Price  with      To 

Amount  Description  Maturity  Ac'd   Int.   Yield 

MUNICIPAL  BONDS. 

(£25,000    Imperial  Japanese  Govt.  4^js.    Feb.  15,     1925.     At  market.  5.00% 

Sterling,  First  Series,  Coupon  F.  &  A. 

******* 

$3,000  FIRST  MORTGAGE  6  PER  CENT.  GOLD  BONDS  OF  THE 
BATTLE  CREEK  COAL  AND  COKE  COMPANY. 

Dated  April  I,  1905;  due  April  I,  1935.  Denomination  $500.  Cou- 
pon. Principal  may  be  registered.  Subject  to  call  and  interest  after  1906. 
Interest  payable  (April  and  October)  at  the  International  Trust  Co., 
Baltimore,  Md.,  and  at  the  banking  house  of  Lawrence  Barnura  &  Co., 
New  York  City.  Principal  payable  at  the  International  Trust  Co.,  Balti- 
more, Md.,  Trustee.  A  sinking  fund  of  10  cents  per  ton,  but  not  less  than 
$7,500  annually,  is  provided  to  retire  bonds.  Stock:  Common,  $400,000; 
preferred,  7  per  cent  cumulative,  $300,000;  bonds  authorized,  $325,000; 
bonds  outstanding,  $300,000. 

These  bonds  are  a  first  mortgage  on  all  property  of  the  Battle  Creek 
Coal  and  Coke  Company,  which  owns  2,378  acres  of  valuable  coal  lands, 
located  at  Orme,  Marion  County,  Tenn.  a  complete  plant,  capable  of  han- 
dling an  output  of  1,000  tons  daily,  and  all  of  the  buildings  and  improve- 
ments in  Orme,  which  town  is  entirely  on  the  property  of  the  Company. 

This  property  has  been  acquired  by  purchase  from  the  Campbell  Coal 
and  Coke  Company,  which  has  been  in  successful  operation  for  over  two 
years,  having  earned  net  over  $60,000  each  year.  Orme  is  located  on  a 
branch  of  the  Nashville,  Chattanooga  &  St.  Louis  R.  R.,  about  ten  miles 
from  Bridgeport,  Ala.,  thirty  miles  from  Chattanooga,  Tenn.,  and  one 
hundred  miles  from  Atlanta,  Ga.,  Nashville,  Tenn.,  and  Birmingham,  Ala., 
and  has  good  railroad  connections  with  the  above-named  cities,  all  of  which 
afford  it  ample  market  for  the  coal  at  good  prices. 
STATEMENT  OF  EARNINGS. 

(13  months) 
1904  1903 

Gross    income   $242,771.16      $227,720.32 

Expenses,  taxes,  renewals,  etc  182,538.71         161,245.01 


Net  income    60,232.45          66,475.31 

Interest  on  bonds  18,000.00          18,000.00 


•Surplus    $  42,232.45      $  48,475.31 

Sinking  fund   7.500.00  7,500.00 

Surplus  applicable  to  dividends  on  stock $  34,732.45      $  40,975.31 

Legality  approved  by  James  H.  Gilbert,  Esq.,  of  Atlanta,  Ga.,  and  Hon. 
Frank  D.  Pavey  of  New  York  City. 

The  books  of  the  company  have  been  audited  by  the  American  Audit 
Company  of  New  York. 


6  REAL    P:STATE   SELF-TAUGHT 

PRICE  io2y2  AND  INTEREST. 
Special  circular  on  application. 

All  statements  in  this  circular  are    based  on  information  ivhich  we  regard 

as  reliable. 

BARNUM,  MERRILL  &  LAMB, 
Suite  534  Mason  Bldg.  Los  Angeles,  Cal. 


FORM  NO.  109— AGREEMENT  FOR  SALE  OF  LAUNDRY  ROUTE. 

THIS  AGREEMENT,  made  in  duplicate  this  I2th  day  of  February,  1906, 
by  and  between  George  W.  Brown,  the  first  party,  and  Amos  Judd,  the 
second  party,,  each  of  said  parties  being  a  resident  of  the  City  of  Los 
Angeles,  State  of  California. 

WITNESSETH,  That  the  said  first  party  agrees  to  sell  and  transfer 
to  the  said  second  party,  and  the  said  second  party  agrees  to  purchase  and 
take  over  the  laundry  route  business  of  said  first  party,  including  the 
good  will  of  said  route,  one  sorrel  horse,  laundry  wagon  and  harness  and 
all  paraphernalia  connected  therewith,  for  the  sum  of  $500,  to  be  paid  as 
follows :  $50  as  a  deposit  and  part  payment,  the  receipt  whereof  is  hereby 
acknowledged ;  $50  at  the  end  of  one  week  from  this  date,  and  $400  at  the 
end  of  two  weeks  from  this  date,  all  payable  to  said  first  party  in  United 
States  Gold  coin ;  Provided,  that  the  following  conditions  shall  be  complied 
with,  namely: 

Said  first  party  shall  take  said  second  party  over  said  route  for  two 
weeks  from  and  after  this  date,  introducing  said  second  party  to  the 
customers  of  first  party,  and  if  the  commissions  or  compensation  from  said 
business  in  and  during  said  two  weeks  shall  be  equal  to  $25  per  week,  net, 
then  said  sale  shall  be  consummated.  The  moneys  received  in  said  two 
weeks  as  such  compensation  shall  be  disbursed  as  follows:  First  party 
shall  receive  all  of  said  moneys  for  the  first  week  and  the  said  party  of  the 
second  part  shall  receive  one-half,  and  said  first  party  shall  receive  one- 
half,  of  the  said  moneys  for  the  second  week. 

Said  first  party  agrees  not  to  engage  in  the  laundry  business  in  the 
City  of  Los  Angeles,  in  any  manner,  either  directly  or  indirectly,  within 
the  term  of  two  years  from  and  after  this  date. 

Upon  consummation  of  sale,  said  first  party  shall  make  a  bill  of  sale 
of  said  goods  and  chattels,  conveying  the  same  to  said  second  party,  free 
and  clear  of  all  incumbrances,  and  shall  warrant  and  defend  the  title 
thereto  against  the  just  and  lawful  claims  of  any  person  whomsoever. 

If  the  above  conditions  as  to  compensation  shall  not  be  complied  with, 
then  said  deposit  of  $50  shall  be  returned  to  said  second  party,  and  second 
party  may  also  retain  the  one-half  of  the  net  earnings  of  said  business 
for  said  second  week,  and  both  of  the  parties  hereto  shall  thereupon  be 
released  from  the  obligations  hereunder. 

If  the  above  conditions  as  to  compensation  are  complied  with  and  the 
second  party  shall  fail  to  consummate  the  purchase,  the  first  party  may 
retain  for  himself  as  liquidated  and  stipulated  damages  all  moneys  received 
on  account  hereof. 

IN  WITNESS  WHEREOF,  The  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

GEORGE  W.  BROWN.         (SEAL). 
AMOS  JUDD.  (SEAL) 


REAL     ESTATE     SELF-TAUGHT  t 

FORM     NO.     i  la— AGREEMENT    OF    EXCHANGEr-LAND    FOR 
LODGING  HOUSE. 

THIS  AGREEMENT,  made  in  duplicate,  this  I2th  day  of  January,  1906, 
between  John  W.  Ives,  the  first  party,  and  Mrs,  Mary  Davis,  the  second 
party,  each  of  said  parties  being  a  resident  of  the>  County  of  Los  Angeles, 
State  of  California. 

WITNESSETH,  That  for  and  in  consideration  of  the  agreements  herein- 
after expressed,  the  parties  hereto  do  hereby  mutually  covenant  and  agree, 
each  with  the  other,  as  follows,  to  wit: 

Said  first  party  agrees  to  sell  and  convey  to  said  second  party,,  and 
said  second  party  agrees  to  purchase  forty  (40)  acres  of  land,  situate  in 
the  County  of  Los  Angeles,  State  of  California,  described  as  the  S.  E.  one- 
fourth  O/i)  of  the  N.  E.  one-fourth  (%)  of  Section  17,  in  Township  4  N., 
Range  15  W.,  S.  B.  M.,  subject  to  a  mortgage  thereon,  for  the  sum  of  $500, 
dated  July  21,  1905,  in  favor  of  Isaac  Jackson,  of  Pasadena,  California,  pay- 
able three  years  after  date,  with  interest  at  the  rate  of  7  per  cent  per  annum, 
net,  said  premises  to  be  conveyed  free  and  clear  of  all  incumbrances,  save 
and  except  said  mortgage  ,by  a  good  andsufficient  deed,  the  title  thereto 
to  be  marketable  and  to  be  evidenced  by  an  unlimited  certificate  of  title 
to  be  issued  by  the  Title  Insurance  &  Trust  Company  of  Los  Angeles,  at 
the  expense  of  first  party,  showing  the  title  in  said  first  party  as  afore- 
said at  this  date  or  later.  The  deed  to  said  premises  shall  contain  a 
clause  to  the  effect  that  second  party  shall  assume  and  pay  said  mort- 
gage. 

The  second  party  agrees  to  sell  and  transfer  to  said  first  party,  and 
said  first  party  agrees  to  purchase  the  furniture  of  ten-room  lodging 
house,  and  the  good  will  and  lease  thereof,  at  No.  805  Central  Ave.,  in  the 
City  of  Los  Angeles,  State  aforesaid,  said  furniture  having  been  this 
day  inventoried  and  listed  as  shown  in  Exhibit  A,  hereto  attached ;  said 
furniture,  good  will  and  lease  to  be  transferred  to  said  first  party  free  and 
clear  of  incumbrances  by  a  recordable  bill  of  sale  to  be  executed  and 
delivered  by  said  second  party. 

Said  first  party  shall  have  said  certificate  of  title  to  said  premises 
brought  down  to  this  date  or  later,  and  if  said  certificate,  when  so  con- 
tinued, shall  show  said  premises  vested  in  said  first  party  clear  of  all 
incumbrances,  except  said  mortgage,  as  aforesaid,  then  said  conveyances 
shall  be  exchanged  and  said  second  party  shall  put  said  first  party  in  pos- 
session of  said  lodging  house.  The  first  party  shall  pay  interest  on  said 
mortgage  to  the  date  when  said  exchange  shall  be  made,  and  said  second 
party  shall  pay  the  rent  of  said  lodging  house  to  said  date.  The  said 
papers  shall  be  exchanged  at  the  real  estate  office  of  George  W.  Brown, 
Room  404,  Chamber  of  Commerce  Building,  Los  Angeles,  California. 

IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

JOHN    W.    IVES,  (SEAL) 

MRS.    MARY   DAVIS  (SEAL) 


8  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  in— AGREEMENT  TO  EXCHANGE'  LAND  FOR 
SHARES  OF  STOCK. 

THIS  AGREEMENT,  made  in  duplicate,  this  22d  of  April,  1906,  between 
FRANK  N.  WILSON,  the  party  of  the  first  part,  and  B.  G.  MILLIKEN,  party 
of  the  second  part,  each  of  said  parties  residing  at  Los  Angeles,  California, 

WITNESSETH,  WHEREAS,  the  said  party  of  the  first  part  is  the  owner 
of  two  thousand  (2,000)  acres  of  land,  situate  in  Lawrence  County,  State 
of  Kentucky,  the  same  being  described  as  Sections  or  Blocks  38  and  39  of 
the  Wilcox  Grant,  each  of  said  blocks  containing  one  thousand  (1,000) 
acres,  the  estimated  value  of  said  lands  being  Twenty  Thousand  ($20,000) 
Dollars;  and 

WHEREAS,  said  party  of  the  second  part  is  the  owner  of  the  majority 
•f  the  shares  of  the  capital  stock  of  the  Milliken  Canal  &  Reservoir 
Company,  a  corporation  organized  under  the  laws  of  the  State  of  Idaho, 
and  having  a  capital  stock  of  $250,000  divided  into  5,000  shares  of  the 
par  value  of  $50  each,  of  which  stock  3,000  shares  are  now  issued  and 
outstanding,  the  object  and  purpose  of  said  Company  being  the  segregation 
and  irrigation  of  lands  under  the  "Carey  Law ;"  and 

WHEREAS,  said  party  of  the  first  part  proposes  to  sell  and  convey  the 
aforesaid  Kentucky  lands  to  said  party  of  the  second  part,  in  exchange 
for  Four  Hundred  (400)  shares  of  the  capital  stock  of  said  Milliken 
Canal  &  Reservoir  Company,  and  said  party  of  the  first  part,  is  willing  to 
make  said  exchange,  provided  and  on  condition  that  the  title  to  said 
lands  shall  be  found  to  be  vested  in  said  party  of  the  first  part  by  a  good 
and  marketable  title,  free  and  clear  of  all  incu-mbrances,  as  shall  be 
shown  by  an  abstract  of  title,  to  be  furnished  by  the  said  party  of  the 
first  part,  at  his  expense : — 

Now,  THEREFORE,  in  consideration  of  the  premises  and  of  One  ($1.00) 
Dollar,  by  each  to  the  other  in  hand  paid,  receipt  whereof  by  each  is 
hereby  acknowledged,  the  parties  hereto  do  hereby  mutually  covenant  and 
agree,  as  follows,  to  wit: 

THE  PARTY  OF  THE  FIRST  PART,  in  consideration  of  the  sale  and  transfer 
to  him  of  the  said  400  shares  of  said  capital  stock,  hereby  agrees  to  sell 
and  convey  to  said  party  of  the  second  part,  by  a  good  and  sufficient  deed, 
(said  deed  to  contain  the  usual  covenants  for  quiet  enjoyment  and  that 
the  vendor  will  defend  the  title  to  said  premises)— the  aforesaid  Kentucky 
lands,  and  agrees  to  furnish,  at  his  own  cost  and  expense,  an  abstract  of 
title  thereto,  showing  said  lands  vested  in  him  at  or  after  this?  date,  by  a 
good  and  marketable  title,  free  and  clear  of  all  incumbrances. 

And  said  party  of  the  second  part,  in  consideration  of  the  conveyance 
to  him  as  aforesaid  of  said  Kentucky  lands,  agrees  to  sell  and  transfer  to 
said  party  of  the  first  part  400  shares  of  the  capital  stock  of  said  Milliken 
Canal  &  Reservoir  Company,  and  to  cause  certificates  in  evidence  of  said 
400  shares  to  be  issued  to,  and  in  the  name  of,  said  party  of  ;the  first  part. 

The  abstract  of  title  to  be  furnished  as  aforesaid,  shall  be  placed  in  the 
possession  of  the  said  party  of  the  second  part  within  fifteen  days  from 
the  date  hereof,  and,  if  upon  examination  thereof,  the  title  to  said  lands 
shall  not  prove  satisfactory  to  said  party  of  the  second  part,  or  his  attorney, 
he  shall  so  notify  said  party  of  the  first  part,  in  writing,  and  thereupon 
this  contract  shall  immediately  become  null  and  void.  If  said  title,  upon 
such  examination,  shall  be  found  satisfactory  to  party  of  the  second  part, 
the  said  exchange  shall  be  consummated,  not  later  than  May  22,  1906,  at  the 
office  of  James  Brown  in  Bryson  Block,  Los  Angeles,  California. 

IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

FRANK  N.  WILSON,        (SEAL) 
B.   G.    MILLIKEN.  (SEAL) 


REAL     ESTATE     SELF-TAUGHT  9 

FORM  NO.  ii2— OPTION  AND  AGREEMENT. 

KNOW  AU,  MEN  BY  THESE  PRESENTS,  That of  the  County  of  Los 

Angeles,  State  of  California,  the  owner,  in  consideration  of  the  sum  of 

dollars,  gold  coin,  to   in  hand  paid,  the  receipt  whereof  is 

hereby  acknowledged,  does  hereby  give  and  grant  unto 

of  the  County  and  •  State  aforesaid,  for  the  term  ending  at  twelve  o'clock 

noon  on  the   ....   day  of ,   1906,  the  exclusive  right  and  option  to 

purchase  that  certain  real  property,  situate  in  the  City  of  Los  Angeles, 
County  and  State  aforesaid,  officially  described  as  follows,  to-wit:  (here 
follows  description.) 

situate   on street,   and  being  of  the   dimensions   of feet 

frontage  on  said  street  by feet  in  depth,  to  a foot   alley,  together 

with   the   appurtenances,    for   the    sum   of ($ )    NET   to    said 

owner,  the  said    price  to  be    payable  as  follows,  to-wit : 

$ the  amount  paid   for  this  option,  which  shall  be  applied  on, 

and  as  a  part  of,  said  purchase  price,  in  event  of  sale ; 

$. . . .  in  cash,  to  be  paid  within  fifteen  days  from  date  of  sale  after  con- 
veyances shall  be  placed  in  escrow; 

$ by  a  negotiable  promissory  note,  to  bear  date  of  sale,  to  be 

executed  by  the  purchaser  to  said  owner,  and  to  be  payable years 

after  date,  with  interest  at  the  rate  of per  cent  per  annum,  payable 

quarterly  and  to  be   secured  by  a  first  mortgage  on  said  premises. 

In  the  event  of  sale,  the  said  owner  agrees  to  make,  '  execute; 
acknowledge  and  deliver  a  good  and  sufficient  deed,  conveying  said  premises 

to  said or  his  assigns,  and  to  furnish,  free  of  expense  to 

the  purchaser,  an  unlimited  certificate  of  title,  to  be  issued  by  the  Title 
Insurance  and  Trust  Co.,  or  Title  Guarantee  and  Trust  Co.,  showing  a 
marketable  title  to  said  premises  to  be  vested  in  purchaser,  free  and  clear 
of  incumb  ranees,  except 

This  option  is  given  subject  to  the  following  conditions  on  the  part 
of  said  owner  to  be  kept  and  performed,  namely: 

That  he  shall  pay  interest  to  date  of  transfer  on  any  mortgage  now 
on  said  premises; 

That  he  shall  transfer  to  purchaser  without  charge,  either  for  transfer 
fee  or  return  premium,  any  policy  or  policies  of  insurance  now  on  said 
premises,  for  the  unexpired  terms  thereof; 

That  he  shall  pay  any  personal  property  taxes  which  by  operation  of 
law  or  otherwise  might  become  or  are  a  lien  upon  said  premises; 

That  he  shall  receive  all  rents  from  said  premises  to  date'of  transfer, 
and  if  said  rent  shall  have  been  or  be  paid  to  him  in  advance  and  beyond 
the  date  of  transfer,  he  will  refund  the  excess  to  the  purchaser; 

In  the  event  of  sale,  all  papers  and  the  said  moneys  are  to  be  placed 
forthwith  in  escrow  with  either  of  the  above  mentioned  Title  Companies. 

In  the  event  this  option  shall  not  be  exercised  within  the  time  above 

limited,  the  said  sum  of  $ shall  be  retained  by  said  owner  as 

liquidated  and  stipulated  damages,  and  both  parties  shall  thereupon  be 
released  from  all  obligations  hereunder. 

All  of  the  covenants  and  agreements  hereof  shall  bind  the  heirs,  legal 
representatives,  successors  and  assigns  of  the  said  respective  parties  hereto, 
and  each  of  them. 

IN  WITNESS  WHEREOF,  the  said has  hereunto  set hand 

and  seal  this day  of ,  A.  D.  1906. 


10  REAL     ESTATE     SELF-TAUGHT 

A  SERIES  OF  LETTERS    TO  FOLLOW  UP  AND  CLOSE  A  SALE 

UNDER  OPTION,  WHERE  AN  INCUMBRANCE  IS 

DISCOVERED. 

(Nos.  113  to  117  inclusive.) 

FORM  NO.  Ji3. 

Los  ANGELES,  CAL.,  April  25,  1906. 
George  Brown,  Esq.,  Agent,  Los  Angeles,  Cal. 

DEAR  SIR  :  Whereas,  I  have  heretofore  paid  you  the  sum  of  $500.00  to 
apply  on  the  purchase  of  (here  describe  premises)  at  the  price  of  $12,000, 
under  an  option  and  agreement  held  by  you  from  the  owner,  Mr.  A.  K. 
Jones,  whereby  he  agrees  to  furnish  an  unlimited  certificate  of  title  showing 
same  premises  free  and  clear  of  incumbrances ;  and 

WHEREAS,  the  certificate  of  title  to  said  premises  shows  the  same  to  be 
incumbered  by  an  easement  in  favor  of  the  City  of  Los  Angeles,  for  a  right 
of  way  for  a  pipe  line  and  the  right  to  operate  same,  and  inquiry  at  the 
office  of  the  Street  Superintendent  of  said  city  shows  that  a  pipe  line, 
30  inches  in  diameter,  runs  diagonally  across  said  premises  about  2% 
feet  beneath  the  surface  of  the  ground,  and  is  now  leased  by  said  city  to 
certain  corporations  and  is  now  in  use: 

Now,  therefore,  because  of  said  incumbrance  and  of  the  defect  in  said 
title,  I  demand  that  you  return  to  me  the  said  sum  of  $500.00  paid  on 
account  of  said  purchase. 

Truly  yours, 

PETER  SMITH. 


FORM  NO.   114. 

Los  Angeles,  Cal.,  April  25,  1906. 
A.  K.  Jones,  Esq., 

Los  Angeles,  Cal., 

DEAR  SIR  :  I  hand  you  hereto  attached,  a  copy  of  notice  of  a  demand 
served  on  me  by  Mr.  Peter  Smith,  with  whom  I  made  a  contract  for  the  sale 
of  your  lots  (here  describe  premises)  at  the  price  of  $i2,ooo,under  and  pur- 
suant to  the  provisions  of  an  option  and  agreement,  signed  by  you  and 
dated  April  I,  1906.  You  will  observe  from  said  notice  that  by  reason  of  a 
defect  in  the  title  to  said  premises,  the  purchaser  declines  to  accept  the 
same  and  demands  return  of  the  deposit  paid  at  the  time  the  contract  with 
him  was  entered  into.  I  request  that  you  proceed  immediately  to  clear  the 
property  of  the  incumbrance  referred  to.,  so  that  I  can  close  the  deal. 

Respectfully  yours, 

GEORGE  BROWN. 
(Inclosure.) 


FORM  NO.  115. 

Los   Angeles,   Cal.,   April  26,    1906. 
Peter  Smith,  Esq., 

Los  Angeles,  Cal. 

DEAR  SIR  :  Referring  to  lots  (here  describe  premises)  which  I  sold 
you,,  and  in  respect  to  which  you  demanded  that  the  deposit  paid  thereon 
be  returned  to-  you,  would  state  that  the  owner,  Mr.  A.  K.  Jones,  informs 
me  that  he  will  proceed  with  due  diligence  and  all  convenient  speed  to 
clear  said  premises  of  the  incumbrance  to  which  you  object,  and  that  he 


REAL     ESTATE     SELF-TAUGHT  11 

will  at  his  expense,  cause  said  pipe  line  to  be  removed  from  said  premises 
and  placed  in  the  adjoining  alley  and  street,  and  that  he  will  procure  from 
the  City  of  Los  Angeles  a  quit-claim  deed,  quit-claiming  to  him  the  ease- 
ment on  said  premises,  and  for  such  purposes  he  desires  that  he  be  allowed 
such  'reasonable  time  as  may  be  necessary,  not  exceeding  sixty  days  in  all. 
I  will  issue  my  check  to  the  Union  Title  Company  for  $500,  being  the 
amount  of  your  deposit,  to  be  held  by  said  Title  Company,  for  said  sixty 
days,  as  per  the  accompanying  instructions,  which  I  request  you  to  confirm. 
If  Mr.  Jones  shall  be  able  to  clear  said  premises  of  said  incumbrance 
within  said  sixty  days,  it  is  understood  that  you  are  thereupon  to  pay  the 
balance  of  the  purchase  price,  to-wit},  the  sum  of  $11,500. 

Respectfully  yours, 

GEORGE  BROWN. 


FORM  NO.  116. 

Los  Angeles,  Cal.,  April  26,  1906. 
To  Union  Title  Co.,  City. 

GENTLEMEN  :  I  hand  you  herewith,  in  connection  with  Escrow  No. 
50,127,  my  check  for  $500,  being  the  amount  advanced  by  Mr.  Peter  Smith, 
as  a  deposit  and  part  payment  on  Lots  (here  describe  premises)  sold  to 
him  at  the  price  of  $12,000,  and  in  respect  to  the  purchase  of  which  he  now 
declines  to  proceed  because  of  a  defect  in  the  title  of  which  he  was  not  in- 
formed at  the  time  of  said  purchase.  In.  order  to  enable  the  owner  of 
said  premises,  and  myself  as  option-holder,  to  attend  to  the  perfecting  of 
the  title  to  said  premises,  the  above-mentioned  sum  is  to  be  held  by  you  in 
escrow  for  the  term,  of  sixty  days  after  this  date.  If  the  title  to  said 
premises  is  perfected  within  said  sixty  days,  you  are  to  return  said  sum 
of  $500  to  me ;  if  said  title  is  not  perfected  within  said  sixty  days,  you  are 
to  pay  said  sum  to  said  Peter  Smith. 

GEORGE  BROWN. 

I  confirm  the  foregoing  instructions. 
PETER  SMITH. 


FORM  NO.  117. 

Los  Angeles,  Cal.,  May  3,  1906. 
Peter  Smith,  Esq., 

Los  Angeles,  Cal. 

DEAR  SIR:  In  the  matter  of  the  sale  to  you  of  lots  (here  describe 
premises)  Mr.  A.  K.  Jones  advises  me  that  he  has  arranged  with  the 
Street  Superintendent  for  the  removal  of  the  pipe  line  from  the  above- 
mentioned  lots  at  any  time  upon  receipt  o'f  notice  from  you ;  but  inasmuch 
as  the  street  department  is  very  busy  just  now,  the  Street  Superintendent 
desires  that  you  defer  making  the  request  for  a  few  days. 

I  hand  you  herewith  an  unlimited  certificate  of  title  issued  by  Union 
Title  Company,  showing  said  lots  free  and  clear  of  incumbrances  and  re- 
quest that  you  make  payment  forthwith  of  the  balance  of  the  purchase 
price. 

I  regret  the  tedious  delay  which  has  attended  the  closing  of  this  trans- 
action, due  to  an  incumbrance,  the  existence  of  which  was  unknown  to 
you  and  myself  at  the  time  of  the  sale,  and  Mr.  Jones  having  accom- 
plished what  seemed  to  be  an  impossible  task,  it  now  remains  for  your 
good  self  to  consummate  the  deal  by  putting  up  the  purchase  price,  with 
said  Union  Title  Company,  Escrow  No.  50,127. 

Respectfully  yours, 

GEORGE  BROWN. 


12  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  1 18— GENERAL  LISTING  CARD,  WITH   SPACE  FOR 

DESCRIPTION,  AND  COMMISSION  CONTRACT, 

BOTH  ON  ONE  SIDE. 

CARNEY  REALTY  CO. 

Name Address Lot Block Tract Loca- 
tion of  property Size  of  lot...x...  To Alley  Cement 

Walks Rooms Bath Toilet Sewer Barn 

Price  $ $ Down,  Balance  $ per  month per  cent  in- 
terest.   Mortgaged  for  $ per  cent Due Rented  for  $ 

per  month.     Water Will   exchange  for Insured   for 

Owner  to  furnish  unlimited  Certificate  of  Title  at expense. 

I  hereby  constitute  the  CARNEY  REALTY  CO.  sole  agent  for  the 
herein  described  property  and  agree  to  pay  a  regular  commission  of  5  per 
cent  on  first  $1,000  and  2^/2  per  cent  on  balance  at  whatever  price  sold. 

This  price  to  be  good  until 190 

Dated 

(Signed) 


FORM  NO.   119— BUSINESS   PROPERTY   CARD.     PARTICULARS 
ON  ONE  SIDE.    SEE  NEXT  FORM  FOR  CONTRACT. 

No Street.      Size Side      Between and Streets. 

Improvements Incumbrance  $ Due Interest % 

Leased  for Years.      Expires Price  $ Terms   

Cash ;  Bal Yrs % Monthly  rent  $ Taxes  $ 

In Net  annual  income  .  .$ Pays %  Net Re- 
marks  Business  Map  No 


FORM  NO.  120— CONTRACT  ON  BACK  OF  FOREGOING  CARD. 

Los  ANGELES,  CAL., 190 

I  hereby  authorize  Federal  Realty  Co.  to  sell  the  hereon  described 
property  upon  the  terms  stated,  until  I  notify  them  otherwise  in  writing. 

I  also  agree  to  pay  said  Federal  Realty  Co.  their  regular  commission 
of  5  per  cent  on  the  first  $1,000  and  2%  per  cent  on  the  remainder  of  such 
sum  as  I  may  accept  as  purchase  price. 

And  I  further  agree  to  notify  said  Federal  R.ealty  Co.  in  writing  when 
this  property  is  sold,  or  any  change  made  in  price  or  terms.  I  authorize 
said  Federal  Realty  Co.  to  put  up  their  sign  on  said  property. 

Owner. 

Address Tel.  Sunset Home 

See  Contract  No See  Letter  Dated 190 Listed 

by Listing  confirmed 190..,  by 190..,  by 

190. .,  by Instructions 


FORM  i2i— BUSINESS  CHANCE  CARD. 

Card    No Business Street    and    No Name 

Rent Lease Value    of    Stock No.    of    Rooms 

Condition Income Expense Amount    of    Help 

Are  double  entry  books  kept? Where  do  you  bank? ..Has  any 

Mercantile     Agency  a    report   on    you? Indebtedness,     what- 


REAL     ESTATE     SELF-TAUGHT  13 

Description  of  business Price  $ Terms Will  exchange 

for 

(Agreement  on  back  to  pay  commission  for  sale  or  exchange.) 


FORM  NO.   122— LIST  OF  PROPERTY  TO  BE  FURNISHED  IN- 
QUIRERS. 

DUPLICATE  LIST  0?  PROPERTY 

FURNISHED  BY 

SMITH  &  JONES, 

Real  Estate  Brokers 

To  the  undersigned  inquirer. 

Los  ANGELES,  CAL 190 — 


The  above  list  of  property  having  been  furnished  me  by  Smith  &  Jones, 
Real  Estate  Brokers,  I  agree,  in  consideration  thereof,  that  if  I  should 
bargain  for,  purchase  or  otherwise  acquire  any  of  said  property,  I  will  dp 
so  only  through  the  agency  of  said  Smith  &  Jones ;  and  if  I  should  fail 
to  keep  this  agreement,  then  I  agree  to  pay  said  Smith  &  Jones  the  sum  of 

Dollars  ($ )  for  their  services  in  furnishing  such  list. 

Signature 

Address. . 


FORM  NO.   123— BLANK  FOR  FURNISHING  LIST  OF  HOUSES 

FOR  RENT. 

HOUSES  FOR  RENT 

— BY — 

WRIGHT    &    CALLENDER 

MANAGERS  OF  RENTAL  PROPERTY 

Wright  &  Callender  Building. 

Telephones :  Sunset,  Main  808 ;  Home,  Private  Ex.,  7      Los  Angeles,  Cal. 
Some  of  the  choicest  residences  in  the  city  for  sale. 


No Street  Rent  5 

Key Street  Rent  J 

No Street  Rent 

Key Street  Rent  i 

No Street  Rent 

Key Street  Rent  i 


Rooms Water. 

Rooms Water. 

Rooms Water. 

Rooms Water. 

Rooms Water. 

Rooms..  Water. 


The  above  list  of  houses  having  been  furnished  me  by  WRIGHT  & 
CALLENDER,  it  is  agreed  that  if  I  rent  any  of  them,  I  will  do  so  only 
through  them,  and  will  pay  to  them  the  first  month's  rent  ,or  their  regular 
commission  as  agent. 
Date 1905  Name Address 


14  REAL     ESTATE      SELF-TAUGHT 

FORM  NO.   124— TENANT'S  APPLICATION. 
WRIGHT    &    CALLENDER, 

RENTAL   DEPARTMENT. 

TENANT'S  APPLICATION. 

Los  ANGELES,  CAL 190 

MESSRS.  WRIGHT  &  CALLENDER: 

I  hereby  make  application  for  the  rental  of  premises  described  below, 
upon  the  following  terms,  and  warrant  all  statements  made  in  application 
to  be  correct. 

Name  in  full Residence Tel.   No Business     Address 

Tel.  No Occupation Number  in  family f  Number 

of  children Oldest     child Sex Youngest     child 

Sex Any   illness  in   family? Do  you   expect  to   rent  rooms? 

Or  keep  boarders? 

I  desire  to  rent  No For  Term  of From At  $ 

per  month,  water  paid  by Deposit  $ Subject  to 

References :    Present   landlord  or  agent Other   references 

If  any  of  above  statements  are  found  to  be  false,  I  hereby  agree  to 
forfeit  said  deposit. 

Witness Signed (Seal) 

Owner Address Tel.    No Approved   by 

Reference  examined  bv.  . 


FORM  NO.  125— RENT  DEPOSIT  RECEIPT. 

WRIGHT    &    CALLENDER, 

Wright  &  Callender  Building. 

$ RENTAL    DEPARTMENT  No 

RENT  DEPOSIT  RECEIPT— All  Rents  Payable  Invariably  in  Advance. 

Los  ANGELES,  CAL 190 

RECEIVED  FROM DOLLARS,  to  be  applied  on  ac- 
count of  rent  of subject  to  tenant  and  the  following  Terms  and 

Agreements  being  accepted  by  owner,  or  WRIGHT     &     CALLENDER, 

Agents.     Rent  to  commence  from   I.  . .  .,  at  a  monthly  rental  of 

Dollars,  Payable  in  Advance,  term Water  to  be  paid  by 

and ,  or  if  not  so  accepted,  this  deposit  be  returned  by  the 

undersigned,  and  accepted  by  applicant,  at  any  time  when  same  is  tendered. 

It  is  a  condition  of  this  receipt  that  within  Twenty-four  hours  after 
notification  of  the  acceptance  of  tenant  and  said  terms  by  owner,  or 
WRIGHT  &  CALLENDER,  Agents,  the  balance  of  one  month's  rent 
(if  any  unpaid)  shall  be  paid  to  WRIGHT  &  CALLENDER,  <xr  the 
amount  herein  receipted  for  shall  be  forfeited  to  them  as  liquidated 
damages. 

Tenant  to  be  entitled  to  possession  of  premises  only  after  notification 
of  acceptance  and  payment  of  full  rent,  as  above  specified,  and  under  no> 
other  conditions. 

The  above  amount  is  accepted  by  the  undersigned  only  on  the  express 
agreement  that  the  applicant  holds  the  owner  of  the  above  described  prem- 
ises and  WRIGHT  &  CALLENDER,  Agents,  harmless  in  every  way, 
except  for  the  return  of  the  amount  deposited,  if  demanded  within  five  (5) 
days  from  the  date  hereof,  in  case  the  application  is  not  accepted. 

This  receipt  is  given  in  connection  with  Application  of  even  date  and 
number  herewith,  which  is  hereby  referred  to  and  made  a  part  hereof. 

WRIGHT  &  CALLENDER,  Agents. 

By 

THIS  RECEIPT  MUST  BE  RETURNED. 


REAL     ESTATE     SELF-TAUGHT  15 

FORM  NO.  126— SCHEDULE  OF  PRICES  OF  LOTS. 

PRICE  LIST  OF   LOTS 
—OF— 

PALM  TERRACE  PLACE. 

Lot    i    $2500.00 

Lots  2  to  ii   inclusive 2000.00 

Lots  14  to  19  inclusive 1500.00 

Lots  20,  21,  and  23 1000.00 

Lots    22-24-25-26 1500.00 

Lots   27-28-29    2000.00 

Lots  30  to  37  inclusive 2500.00 

Lots  44  to  51   inclusive 2000.00 

Lot  52   1700.00 

TERMS. 

One-fourth  cash;  balance  6,  12  and  18  months,  at  7%  net.  Five  per 
cent  discount  for  cash. 

IMPROVEMENTS  will  be  made  promptly  and  as  follows :  Oiled  streets, 
Cement  walks  and  Curbs,  Water  piped  to  each  lot  and  shade  trees  planted 
in  front  of  every  lot. 

RESTRICTIONS:  Jefferson  and  Fourth  Ave.,  $1500.  All  other  lots 
$1250,  except  lots  south  of  Edison;  these  latter  lots  $1000.  No  barns  or 
temporary  buildings  allowed  to  be  built  until  house  is  completed.  All 
houses  must  be  built  25  feet  from  front  property  line,  and  a  number  of 
other  desirable  restrictions  will  be  included. 

NEW  HOUSES  TO  BE  BUILT.  Three  new  houses  will  soon  be 
built  in  the  first  block  on  Jefferson  street.  These  houses  will  be  built  by 
the  owners  of  the  Tract. 

CERTIFICATE  OF  TITLE  by  the  Title  Insurance  and  Trust  Co. 
will  be  furnished  with  every  lot  as  paid  for. 


FORM   NO.    127— A   STRIKING  SUBDIVISION   AD. 

"  Sauttyvestward  the  growth  of  Greater  Los  Angeles 
takes  its  way." 

Jefferson  St.  Park  Tract 

A    FORTUNE    IN    LOTS 


Right  in  Line  of  the  City's 
Irresistible  Growth  South- 
west The  Handsomest 
Subdivision  in  Greater 
Los  Angeles. 


On  West  Jefferson  Street 
Car  Line,  Bounded  on  the 
East  by  Arlington  Street, 
on  Both  Sides  of  Jefferson 
Street. 


JEFFERSON  ST.  PARK  TRACT 

The  owners  of  this  beautiful  subdivision  present  it  as  the/tnost 
attractive  and  desirable  moderate-priced  tract  in  the  city  It  is 
the  logical  location  fur  a  beautiful  home  district —the  place  of  all 
places  It  commands  j  great  panoramic  view  across  the  perpetu- 
ally ji'oen  Santa  Monica  Valley  to  the  ocean.  Cool  ID  summer 
ftod  vvarm  in  winter.  Fine  soil  and  pure  water. 

JEFFERSON  ST.  PARK  TRACT 

Only  30  minutes  distant  from  Fourth  and  Broadway  All  the 
lots  are  level  and  carry  $150000  building  restrictions.  All  street 
Improvements  to  be  made  ai  once.  The  city  is  built  solidly  10 
this  trdct,  and  must  grow  through  it.  The  careful  restriction*  ihni 
&oycrn  it  and  the  neighboring  properties  wit)  insure  you  the  most 
ideal  and  refined  surroundings  for  your  home. 

JEFFERSON  ST.  PARK  TRACT 

Make  your  reservations  now.  Several  fine  homes  to  be  built 
ai  once.  Secure  your  lot,  for  they  will  quickly  double  in  value 
Prices  $550  and  up.  Terms,  one-fourth,  cash,  one-fourth  6  months, 
one-fourth  12  months,  balance  in  18  months.  5  per  rent,  discount  for 
cash,  Jt  fs  the  lot  under  the  thousand  mark  thai  makes  you  the 
dollars. 

JEFFERSON  ST.  PARK  TRACT 

Remember,  it  is  on  Jefferson  street,  tlie  great  south  cross-town 
thoroughfare  of  Los  Angeles.  Renv.'iuber.  it  is  SOUTH WRST. 
and  on  a  car  line.  Remember,  it  is  close  in  the  city,  and  your 
profits  are  assured.  Make  your  reservations  today  Regular  com- 
mission to  agents. 

SEE  OWNERS'  REPRESENTATIVES: 

ARTHUR  W.  KINNEY  CO., 

119  Merchants  Trust  Bldg.,  Ground 
Floor.     Phone  Home  402. 

G.  G.  JOHNSON, 

204-5  Bryson  Bldg.     Phone  Home   180. 
P.  W.  POWERS, 

234  Byrne  Bldg.     Phone  Home  3041. 


REAL     ESTATE     SELF-TAUGHT  17 

FORM  NO.  128— A  TYPICAL  REAL  ESTATE  BULLETIN. 

**Live  and  let  live  today"  is  a  good  maxim,  but  "Live  and  help  live  every 

day"  is  better. 
EASTER  GREETINGS :  "Be  Joyful" 

REAL       ESTATE       BULLETIN 

CHARLES  M.  STIMSON. 

207  Trust  Bldg.  Cor.  2nd  aand  Spring  Sts. 

Telephones :  Home  7585 ;  Sunset  Main  6005.  Los  Angeles,  Cal. 

I  am  the  owner  of  all  properties  quoted  for  sale  in  my  list.  They  afe 
all  free  from  all  incumbrances  and  I  offer  the  same  for  sale  on  easy  terms 
to  suit  purchasers  at  good  investment  prices.  If  you  see  what  you  want 
speak  quickly  as  prices  are  advancing  to  keep  pace  with  the  rapid  growth 
of  our  city.  The  prices  are  subject  to  change  without  notice,  and  all  sales 
are  subject  to  my  approval.  Regular  commission  on  sales  made  by  dealers. 

PRICE  LIST  NO.  12.    INCOME  AND  BUSINESS  PROPERTY. 
$21000    No.  504-506  E.  3rd  street,  restaurant,  tailor  shop  and  3  rooms  first 
floor,  14  rooms  second  floor;  lot  35x100  to  alley;  near  Central  Ave. 
market.     Street  paved.    $600  per  foot. 

20000    No.  369  Central  Ave.,  opposite  market,  25x100,  restaurant.     $800 
per  foot. 


FORM  NO.  I29-TWO  SUGGESTIVE  ADS.  FOR  BUILDERS. 
HOMES    FOR  THE  MILLION. 

As  to  building — do  you  contemplate  erecting  a  residence,  store,  office 
building  or  factory?  Our  architectural  department  is  managed  by  one 
of  the  finest  architects  in  Los  Angeles,  a  graduate  of  the  English  schools  of 
architecture,  with  ten  years'  practical  experience,  thoroughly  conversant 
with  every  department  of  the  business,  whose  plans  are  unsurpassed  in 
architectural  effect,  beauty  of  design,  space  utilization,  economy  of  con- 
struction and  durability.  Remember,  we  do  the  work  ourselves.  We  do 
not  sublet  our  work.  We  employ  our  own  force  of  men  in  every  depart- 
ment, plumbing  excepted.  Our  managers  are  thoroughly  up  to  date  and  re- 
liable, and  we  assure  you  that  you  will  receive  everything  that  we  specify 
according  to  the  terms  and  spirit  of  our  specifications.  Try  us.  Once  a 
customer,  always  a  customer. 

FEDERAL  REALTY  COMPANY. 

433  Stimson  Building.  ,  Los  Angeles,  Cal. 

Home  Phone  1275. 


FORM   NO.    130— FOR    SALE— HOUSES. 


WE  HAVE  TALKED 

a  great  deal  during  the  past  four  months  about  home  building,  and  during 
that  time  we  have  convinced  a  great  many  wide-awake  people  that  our  plan 
of  building  houses  is  just  about  the  proper  thing. 


18  REAL     ESTATE     SELF-TAUGHT 

NEVERTHELESS 

there  are  a  few  remaining  who  have  not  heard  of  us  and  of  the  thoroughly 
modern  houses  that  we  design  and  build. 

It  seems  to  us  that  our  plan  once  explained  would  immediately  appeal 
to  you.  We  build  for  cash,  after  plans  and  specifications  that  you  furnish, 
or,  better  still,  if  you  will  come  to  the  office  and  tell  us  what  you  want,  the 
number  of  rooms,  etc.,  we  will  guarantee  to  get  you  out  one  of  the  nicest, 
neatest  and  best  arranged  plans  for  a  house  that  you  have  seen;,  and  we 
will  write  the  specifications  to  meet  the  requirements  and  furnish  the  entire 
cost  of  the  house,  if  you  desire.  And  you  can  repay  us  as  you  see  fit. 
We  will  make  you  a  loan  to  be  repaid  in  three  or  five  years,  interest  to  be 
paid  every  three  months,  or  you  can  repay  us  in  monthly  payments,  the 
same  as  you  pay  rent.  Your  payments  start  when  the  house  is  finished. 
We  charge  nothing  for  the  plans  and  specifications. 

Come  in  and  see  us  and  let  us  convince  you  that  in  Los  Angeles  our 
houses  are  in  demand. 

J.  BURRIS  MITCHELL  &  CO. 
Contractors  and  Builders. 

326  Douglas  Building. 
Sunset,  Black  3991.  Home,  3774 


FORM  NO.  131— THIS  AD.  IS  HELPFUL  AND  ASSURING,  AND  IS 

AN  EXCELLENT  MODEL  TO  FOLLOW  FOR 

COUNTRY  LANDS. 

FOR  SALE— 

Country  Property. 


HOMESEEKERS. 


THIS  IS  FOR  YOUR  GOOD! 


IF  YOU  ONLY  KNEW  IT. 

Is  it  not  worth  your  while  to  make  sure  that  you  are  getting  the  best 
for  your  money  when  you  buy  a  ranch  that  may  be  your  home  for  many 
years,  if  not  for  life? 

Will  it  not  be  wisdom  on  your  part  to  go  slow  until  you  are  sure  of 
what  you  are  buying?  Remember,  it  is  a  good  deal  easier  to  buy  than  to 
sell;  be  sure,  then,  that  you  buy  in  the  right  section. 

NEW  FRIENDS,  let  us  tell  you  that  we  have  farmed  our  own  land 
for  many  years,  we  have  cultivated  and  pruned  our  own  orchards  and  har- 
vested the  crops  from  them;  we  know  good  land  when  we  see  it.  We 
have  been  of  untold  assistance  to  thousands  of  homeseekers;  we  have  saved 
them  thousands  of  dollars ;  may  •  we  not  be  of  equal  assistance  to  you  ? 
Our  advice  costs  you  nothing,  and  certainly  if  any  advice  is  worthy  of 
consideration  it  is  ours.  It  certainly  ought  to  be — we  have  had  the  actual 
practical  experience.  We  have  made  a  success  of  farming  and  we  can  help 
others  to  do  the  same.  We  know  from  our  own  experience  all  the  draw- 
backs with  which  the  California  farmer  has  to  contend.  We  know,  too,  that 
few  men  can  pay  $250  to  $500  an  acre  for  land  and  make  a  living  and  in- 
terest on  their  money,  unless  it  be  in  concentrated  form.  Take  our  advice 
and  learn  something  about  CENTRAL  CALIFORNIA.  We  can  give  you 


REAL     ESTATE     SELF-TAUGHT  19 

good  valley  land  for  $50  to  $100  per  acre,  where  no  irrigation  is  necessary, 
rainfall  being  25  to  35  inches  and  CROP  FAILURE  UNKNOWN. 

Just  send  5c  for  illustrated  literature  which  will  show  you  what  can 
be  done  by  the  farmer  in  this  section. 

Send  Sc  for  colored  map  of  the  State. 
Send  a  stamp  for  free  catalogue. 

Let  us  hear  from  you  anyhow.     Correspondence  does  not  cost  much 
and  it  will  result  to  our  mutual  benefit. 

BURR-PADDON  CO. 

(Incorporated.) 
San  Francisco.  California. 

FORM  NO.  132— AN  ARGUMENTIVE  AD.,  USEFUL  IN  WORKING 
UP  INTEREST  IN  A  PARTICULAR  STREET. 

FOR  SALE— 

Business  Property. 


CONCERNING  JEFFERSON  STREET. 

I  present  below  what  I  POSITIVELY  KNOW  to  be  the  four  best 
investment  propositions  on  all  JEFFERSON  ST.,  and  that  means  the  four 
best  in  Los  Angeles  (for  a  moderate  amount  of  money,)  because  JEFFER- 
SON is  now  LOWER  in  price  than  any  other  street  of  anything  like  its 
importance  in  this  city.  It  has  not  been  "boomed"  as  have  most  of  the 
others.  Great  jumps  in  price,  like  those  on  Washington,  Pico,  Figueroa 
and  Main,  are  YET  TO  CpME,  and  they  will  come  SOON.  It  is  natural 
and  ONLY  cross-town  business  street  for  the  southern  end  of  town,  and  it 
offers  to  the  scientific  investor  opportunities  that  he  will  seek  in  vain 
elsewhere. 

If  you  ever  lived  in  New  York,  Chicago,  St.  Louis,  or  any  of  the  other 
large  eastern  cities,  go  out  and  study  JEFFERSON,  and  see  what  a 
striking  analogy  there  is  between  it  and  such  streets  as  39th  and  47th  in 
Chicago  and  Spth  or  I25th  in  New  York,  which  I  might  add,  are  cross- 
town  thoroughfares,  removed  several  miles  from  the  downtown  center,  and 
yet  among  the  GREATEST  business  street  of  this,  country.  ''  What  they 
have  become,  JEFFERSON  will  become,  and  the  tfme  is  not  so  far  away 
when  JEFFERSON,  between  Main  and  Figueroa,  will  be  worth  $250  a 
foot.  This  may  seem  strange,  but  IT  IS  TRUE. 

Here  are  the  FOUR.  There  is  a  certain  profit  on  each  one  of  from 
FIFTY  TO  ONE  HUNDRED  per  cent,  in  the  next  eight  months. 

Corner  Grand  and  JEFFERSON— 100x185  on  JEFFERSON,  income 
$100  a  month,  andonly  ONE-FIFTH  improved.  Five  stores  could  be  put 
on  this  corner  aand  rented  IMMEDIATELY.  $10,000  cash  in  this  will 
DOUBLE  within  a  year. 

51x160,  near  Grand,  $3,250.  This  is  the  ONLY  vacant  lot  on  the  south 
side  of  JEFFERSON,  between  Main  and  Figueroa,  and  is  a  grand  little 
buy.  Get  it  and  they'll  have  to  come  to  you.  Price  goes  to  $3,500  if  not 
sold  Feb.  15. 

Corner  on  JEFFERSON,  near  Grand,  with  5-room  house,  $3,750.  It's 
worth  $4,000  now,  and  in  a  few  months  it  will  be  $5000. 

50x140,  with  fine  Q-room  house,  few  feet  west  of  Main  on  south,;  side 
street.  Price  $7,000.  The  lot  ALONE  is  worth  $4,500,  and  the  house  $3,000. 

The  above  prices  are  for  NOW.  They'll  be  DIFFERENT  a  month 
hence,  because  they  are  the  LAST  three  pieces  left  on  the  original  options 
I  secured  on  JEFFERSON  early  in  January.  Everything  else  is  20  per 
cent  higher.  Just  inquire  and  see  if  I  am  right.  ,J 

RALPH  SULLIVAN, 
Phone  Home  5985.         142  S.  Broadway.     Room  105. 


20  REAL     ESTATE     SELF-TAUGHT 

FORM   NO.    133— AN   AD.    CONFIRMING   PRIOR   STATEMENTS. 

FOR  SALE— 

Business  Property. 

CONCERNING  JEFFERSON  ST. 

JEFFERSON  is  no  longer  a  "coming"  business  street.  It  has  AR- 
RIVED. There  are  at  present  MORE  business  improvements  contem- 
plated and  arranged  for  on  JEFFERSON,  between  Main  a;nd  Wesley  ave- 
nue, than  on  ANY  OTHER  STREET  IN  LOS  ANGELES,  outside  the 
downtown  center. 

On  the  24th  of  last  January,  in  this  column  of  this  paper,  in  my  talk 
concerning  "Jefferson  Street,"  at  the  same  time  that  I  offered  a  lot  on 
JEFFERSON,  between  Main  and  Grand,  for  $55  a  foot,  and  another  for 
$60,  I  made  this  prediction: 

"I  say  now  that  eight  months  hence  property  on  JEFFERSON,,  be- 
tween Main  and  Grand  will  cost  you  not  less  than  $100  a  foot,  and  be- 
tween Grand  and  Figueroa  $75  a  foot.  If  you  don't  believe  this  is  con- 
servative now,  you  will  LATER." 

I  sold  those  two  lots,  and  you  can't  buy  either  now^— TWO  MONTHS 
later — for  less  than  $100  a  foot,  and  they're  as  cheap  as  anything  between 
Main  and  Grand.  You  can't  buy  anything  NOW  between  Grand  and  Fig- 
ueroa on  JEFFERSON  for  less  than  $75  a  foot.  Don't  you  think  I'm  a 
PRETTY  FAIR  guesser  when  it  comes  to  JEFFERSON  street  property? 
Don't  you  wish  you'd  bought  a  few  dollars'  worth  of  those  twelve  pieces 
I've  sold  on  JEFFERSON  street  since  February  first? 

But  never  mind  that.  (Some  people  NEVER  CAN  see  a  bargain  till 
some  one  else  buys  it.)  There  are  plenty  of 'opportunities  yet.  The  good 
times — the  money  making  times — on  JEFFERSON  have  just  BEGUN. 
Values  are  increasing  more  rapidly  in  the  southwest  than  in  any  other  sec- 
tion of  this  town;  JEFFERSON  is  to  be  paved  from  Main  to  Vermont 
very  soon,  and  possibly 'from  South  Park  to  Western  avenue;  business  is 
springing  up  all  along  this  grand  street;  what  JEFFERSON  is  TODAY 
is  but  the  faintest  echo  of  what  it  WILL  BE  three  or  four  years  hence,  and 
present  prices  are  in  proportion. 

I  honestly  believe  that,  at  prevailing  figures,  there  is  no  property  in 
the  city  which  offers  as  large  a  profit  as  JEFFERSON,  between  Main  and 
Wesley.  I  am  buying  there  myself.  I  am  getting  my  closest  friends  to 
buy  there.  I  am  spending  money  to  advise  YOU  to  buy  there,  primarily 
because  there's  a  commission  in  it,  and  secondarily — and  this  is  more  im- 
portant— because  I  know  I  can  give  you  such  a  satisfactory  investment  that 
you'll  come  after  more — at  least,  this  is  the  experience  I've  had  with  every 
client  I've  sold  to  on  JEFFERSON  this  year.  Ask  them. 

I  have  two  exceedingly 'good  things  right  now  on  JEFFERSON.  One 
will  take  $2500  cash,  the  other  $7500.  If  you  are  ready  to  buy  right  now, 
and  not  just  "shopping  around,"  I'll  be  glad  to  give  you  full  particulars. 

RALPH  SULLIVAN, 
Tel.  Home  5985.  223  rW.  Second  St. 


REAL     ESTATE     SELF-TAUGHT  21 

FORM  NO.  134- 
This  ad.  brings  out  prominently  sizes  of  lots  and  prices. 

FOR  SALE- 
SPECIAL    BARGAINS    IN    LOTS. 

$1500— Wilton,  near  16th 50x155 

$1250— Oxford,    near    16th 50x155 

$900 — Sixth  ave.,  near  Adams. 52x1 50 
$700 — Fourth  ave.,  near  20th.. 50x140 
$1500— Orchard  ave.,  near  27th. 50x125 
$750 — Jefferson,  near  Hobart.  .50x150 
$900 — Brighton,  nr.  Jefferson.  .50x150 

$1250— Halldale,  near  29th 50x150 

A.  W.  ROSS, 
L.A.R.B.  420  Bradbury  Building. 


FORM  NO.  135. 
Hotels  and   Lodging  Houses. 

28  ROOMS,    CLOSE     IN $900 

17  rooms,  close   in $800 

17   rooms,  central $450 

20  rooms,  central $900 

1 1     rooms,    central $350 

7  rooms,  fine  furniture,  mo- 
quette  and  body  brussels  car- 
pets and  Briggs  piano $325 

10  rooms,  with  nice  stock  of  gro- 
ceries,    good     location,     rent 

$20      $1300 

C.   H.  GEORGE   &  CO., 

545  South  Spring. 


22 


REAL     ESTATE     SELF-TAUGHT 


FORM  NO.  136. 

This  ad.  shows  the  effect  of  surround- 
ing blank  space. 


FOR  SALE- 
WESTMINSTER  SQUARE. 

MAGNIFICENT  NEW    WESTLAKE 
TRACT, 

AT  10  PER  CENT.  DISCOUNT 

FOR  A  FEW  DAYS. 
No  greater  opportunity  for  profit- 
able investment  will  be  found  in  this 
paper  today  than  here  offered.  This 
high  class  residence  subdivision  has 
absolutely  every  advantage  of  desir- 
able location  and  environment  that 
can  make  residence  property  valu- 
able. Location,  southwest  corner  of 
Fourth  and  Western  ave. ;  high- 
class  subdivisions  on  every  hand; 
the  Sixth  st.  car  line  is  now  being 
constructed  directly  through  this 
property,  and  will  be  in  operation 
in  three  -months;  values  must  ad- 
vance rapidly  then.  Right  NOW 
and  right  HERE  is  the  critical  time 
for  you  to  get  one  of  the  most  de- 
sirable home  sites  in  this  city,  or  se- 
cure a  certain  money  making  invest- 
ment. Our  autos  at  your  service 
daily. 

ALTHOUSE  BROS., 
Members  L.  A.  Realty  Board. 

234  Laughlin  Bldg., 
Main  263.  Home  Ex.  263. 


REAL    ESTATE     SELF-TAUGHT  23 

FORM  NO.  I37-PETITION,  VERIFIED,  AND  ORDER  OF  COURT, 

AUTHORIZING  INVESTMENT  OF  WARD'S 

FUNDS  BY  GUARDIAN. 

No.  3362.  Dept.  2. 

In  the  Superior  Court  of  the  State  of  California,  in  and  for>  the  County 

of  Los  Angeles. 

In  the  Matter  of  the  Estate  and  Guardianship,  of  James  Jones,  In- 
competent. 

Petition  of  Guardian  for  Leave  to  Invest  Moneys  of  Ward. 

The  petition-  of  Peter  Bennett  respectfully  shows : 

1.  That  he  is  the  duly  appointed,  qualified  and  acting  Guardian  of 
John  Jones,  an  incompetent. 

2.  That  he  has  in  his  hands  Fifteen  Hundred  Dollars   ($1,500)   the 
same  being  proceeds  of  property  which  belonged  to  said  John  Jones,  in. 
the   State  of   Pennsylvania. 

3.  That  the  petitioner  desires  to  invest  said  moneys  in  the  City  of  Los 
Angeles,  California,  in  property  that  will  produce  an  income!  and  at  the 
same  time  enhance  in  value. 

4.  That  he  has  agreed  with  Elmer  Belding  and  Belinda  Belding  to 
purchase  of  them,  if  the  Court  shall  approve  such  purchase,  Lot  no  of  the 
Baldwin  Tract,  as  per  map  recorded  in  Book  40,  at  page  268,  Miscellaneous 
Records  of  Los  Angeles   County,   California,   said   lot  being  situated  on 
Enterprise   Avenue  and  having   improvements   consisting  of  a  five-room 
cottage,    numbered   2134. 

5.  That  the  purchase  price  of  said  property  is  Two  Thousand  Dollars 
($2,000),  and  that  the  rental  value  of  the  same  is  from  $13.50  to  $14.00  per 
month ;  that  there  is  a  trust  deed  upon  said  premises  for  the  sum  of  Eight 
Hundred  and  Fifty  Dollars    ($850.00)    in  favor  of  the  Federal  Building 
and  Loan  Association  of  San  Francisco,  California,  on    which  there  is  a 
credit  of  Two  Hundred  Dollars  ($200.00),  leaving  a  balance  of  said  trust 
deed  of  Six  Hundred  and  Fifty  Dollars  ($650.00). 

6.  That  the  petitioner  has  advanced  Fifty  Dollars    ($50.00),  of  his 
own  funds  to  bind  the  bargain,  and  the  owner  has  agreed  to  pay  and 
transfer  fee  on  the  certificate  of  stock  in  said  Federal  Building  and  Loan 
Association,  so  that  the  amount  to  be  paid  in  cash  out  oi  the  funds  in  the 
hands   of   the   petitioner,    if   said   purchase    shall   be   authorized,    will   be 
Thirteen   Hundred   and   Fifty   Dollars    ($1,350.00). 

7.  That  the  payments  on  the  trust  deed  above,  mentioned  are  Nine 
Dollars  20-100  ($9.20)   per  month,  including  taxes,  and  the  rentals  from 
the  property  will  be  sufficient  to  make  such  monthly  payments,  and  peti- 
tioner believes  that  the  income  from  said  property   will  not  only  meet 
the  deferred  payments  thereon,  but  that  the  property,  being  located  between 
Sixth  and  Seventh  Streets  on  Enterprise  Avenue,  will  increase  in  value, 
and  that  the  investment  of  Thirteen  Hundred  and  Fifty  Dollars  ($1,350), 
of  his  ward's  money  in  said  property  would  be  judicious  and  would  pro- 
mote the  welfare  of  the  estate  of  his  said  ward. 

8.  That  the  said  ward  is  not  competent  to  determine  or  advise  as  to 
whether  said  purchase  should  be  made,  and  his  children  are  all  minors, 
the  oldest  being  thirteen  years  of  age. 

Wherefore,  petitioner  prays  the  Court  to  make  an  order  authorizing 
him  to  purchase  said  lot  and  improvements  on  the  terms  above  stated, 
without  notice. 

Dated  at  Los  Angeles,  Calif ornia>  April  13,  1906. 

RUFUS  SPAULDING, 
Attorney  for  Petitioner. 
PETER  BENNETT,  Petitioner. 


24  REAL    ESTATE     SELF-TAUGHT 

(VERIFICATION.) 

State  of  California,  County  of  Los  Angeles,  ss. 

Peter  Bennett,  being  by  me  duly  sworn,  desposes  and  says:  That 
he  is  petitioner  in  the  above  entitled  action;  that  he  has  read  the  fore- 
going petition  and  knows  the  contents  thereof ;  and  the  same  is-  true  of 
his  knowledge,  except  as  to  matters  which  are  therein  stated  upon  his 
information  and  belief,  and  as  to  those  matters  that  he  believes  it  to  be 
true. 

PETER  BENNETT. 

Subscribed  and  sworn  to  before  me  this  I3th  day  of  April,  1906. 

(SEAL)  MARY  M.  RICE, 

Notary  Public  in  and  for  the  County  of 

Los  Angeles,  State  of  California 
No.  3362.     Dept.  2. 
Granted  April  20,  1906. 

(ORDER  OF  COURT.) 

BE  IT  REMEMBERED  that  on  the  2Oth  day  of  April,  1906,  'inj  Department 
Two  of  the  Superior  Court  of  the  County  of  Los  Angeles,  State  of  Cali- 
fornia, Hon.  C.  A.  Giles.  Judge,  Presiding;  present,  Mr.  L.  M.  Williams, 
Deputy  Clerk,  the  following  proceedings  were  had,  to  wit: 

In  the  matter  of  the  Estate  and  Guardianship  of  John  Jones,  art 
Incompetent. 

ORDER  AUTHORIZING  INVESTMENT. 

The  petition  of  Peter  Bennett,  the  guardian  of  said  John  Jones,, 
incompetent,  for  an  order  authorizing  him  as  such  Guardian  to  invest  a 
portion  of  the  funds  in  his  hands  belonging  to  said  ward  in  the  house  and 
lot  described  in  said  petition,  subject  to  the  incumbrance  as  i'n  said  petition- 
stated,  coming  on  for  hearing,  and  evidence  having  been  heard,  it  is  or- 
dered by  the  Court  that  said  petition  as  prayed  be  granted. 

Entered  Jan.  20,  1906. 

N.   A.   MARSH,   County  Clerk, 
By  JAMES  SCOTT,  Deputy. 

Certificate  under  date  of  April  21,  ioo6..|  of  N.  A.  Marsh,  County 
Clerk,  that  the  same  is  a  true  copy. 


FORM  NO.  138— CORPORATE  BOND. 

United  States  of  America,  State  of  California — Union  Transportation  Com- 
pany. 

First  Mortgage  Five  Per  Cent.  Sinking  Fund,  Twenty- Year  Gold  Bond. 
Number $1000. 

For  Value  Received,  the  UNION  TRANSPORTATION  COMPANY, 
a  corporation,  organized  and  existing  under  the  laws  of  the  State  bf  Cali- 
fornia, and  having  its  principal  place  of  business  at  Los*  Angeles,  County 
of  Los  Angeles,  State  of  California,  promises  to  pay  to  the  bearer  hereof 
or  to  the  registered  holder  of  this  bond,  if  the  same  be  registered,  One 
Thousand  Dollars  ($1,000)  in  gold  coin  of  the  United  States  of  America, 
of  the  present  standard  of  weight  and  fineness,  on  the  first  day  of  Feb- 
ruary, in  the  year  1926  at  the  office  of  the  Title  Insurance  and  Trust 
Company  in  the  City  of  Los  Angeles,:  State  of  California,  or  at  the 
Corn  Exchange  Bank  in  the  City  of  New  York,  State  of  New  York,  and 
to  pay  interest  thereon  from  the  date  hereof  until  paid,  at  the  rate  of  five 
per  centum  per  annum,  at  the  places  specified  in  the  annexed  coupons,  in 


REAL     ESTATE     SELF-TAUGHT  25 

like  gold  coin  semi-annually  on  the  first  days  of  February  and  August 
in  each  year,  upon  the  presentation  and  surrender  of  said  interest  coupons 
as  they  severally  mature.  This  bond  is  one  >of  a  series  of  First  Mortgage 
Five  Per  Cent.  Sinking  Fund  Twenty-Year  Gold  Bonds  of  the  Union 
Transportation  Company,  of  the  denomination  of  one  thousand  dollars 
($1,000)  each,  numbered  from  one  (i)  to  three  thousand  (3,000),  both 
inclusive,  issued  and  to  be  issued  to  an  amount  not  exceeding  in  the 
aggregate  the  principal  sum  of  three  million  dollars  ($3,000,000),  under  the 
provisions  of,  and  be  equally  secured  by,  a  mortgage  or  deed  of  trust 
dated  February  1st,  A.  D.  1906,  and  executed  by  the  Union  Transportation 
Company  to  the  Title  Insurance  and  Trust  Company  of  Los  Angeles, 
California,  as  Trustee,  to  which  mortgage  or  deed  of  trust  reference  is 
hereby  made  for  the  description  of  the  property,  rights  and  franchises 
mortgaged,  the  nature  and  extent  of  the  security  and  rights  of  the  holders 
of  bonds  under  the  same  and  the  terms  and  conditions  upon  which  the 
bonds  are  issued  and  secured.  This  bond  shall  pass  by  delivery  unless 
registered  in  the  name  of  the  owner  on  the  books  olf  said  Union  Trans- 
portation Company,  such  registry  being  noted  on  the  bond  by  said  last 
mentioned  corporation.  After  such  registry,  no  transfer  shall  be  valid 
unless  made  on  said  books  by  the  registered  owner  in  person,  or  by  his 
attorney  duly  authorized,  and  similarly  noted  on  the  bond.  The  same 
may  be  discharged  from  registry  by  being  in  like  manner  transferred  to 
bearer,  and  thereupon  transferability  by  delivery  shall  be  restored,  but 
this  bond  may  again,  from  time  to  time,  be  registered  and  transferred  to 
bearer  as  before.  Such  registry,  however,  shall  not  affect  the  negotiability 
of  the  coupons  which  shall  continue  to  be  transferable  by  delivery.  This 
bond  shall  not  be  obligatory  for  any  purpose  until  the  certificate  of  the 
said  trustee  authenticating  the  same  shall  have  been  duly  signed  by  said 
trustee. 

IN  WITNESS  WHEREOF,  the  Union  Transportation  Company  has  caused 
these  presents  to  be  signed  by  its  President,  and  its  corporate  seal  to  be 
hereunto  affixed,,,  to  be  attested  by  its  Secretary,  and  coupons  for  said 
interest  with  the  engraved  fac  simile  signature  of  its  Secretary  to  be 
attached  hereto,  as  of  the  first  day  of  February,  A.  D.  1906. 

UNION  TRANSPORTATION  COMPANY. 

By 

President. 
Attest 

Secretary. 

Coupon  No>.  $25. 

On  the  first  day  of ,  19 ,  the  Union  Trans- 
portation Company  will  pay  to  bearer,  at  the  American  National  Bank  in 
the  City  of  Los  Angeles,  State  of  California,  or  at  the  Corn  Exchange 
Bank  in  the  City  of  New  York,  State  of  New  York,  at  the  option  of  the 
holder  hereof,  Twenty-five  Dollars  ($25)  in  United  States  gold  coin,  of  the 
present  standard  of  weight  and  fineness,  being  six  months'  interest  then 
due  on  its  First  Mortgage  Five  Per  Cent.  Sinking  Fund  Twenty- Year 

Gold  Bond,  No 

W.  A.  CARNEY,  Secretary. 

The  TITLE  INSURANCE  AND  TRUST  COMPANY,  of  Los 
Angeles,  California,  the  trustee  within  named,  hereby  certifies  that  the 
within  bond  is  one  of  the  series  of  bonds  therein  mentioned;  that  said 
company  has  examined  the  records  of  the  proceedings  taken  for  the 
incorporation  of  said  UNION  TRANSPORTATION  COMPANY  and 
for  the  execution  and  issuance  of  said  bonds  and  of  the  deed  of  trust 
herein  referred  to;  that  from  such  examination  it  appears: 

That  said  UNION  TRANSPORTATION  COMPANY  is  duly  incor- 


26  REAL     ESTATE     SELF-TAUGHT 

porated  under  the  laws  of  the  State  of  California,  and  is  empowered  by 
law  to  issue  said  bonds  and  to  execute  said  deed  of  trust;  that  all  the 
requirements  of  law  have  been  complied  with  in  the  authorization,  execu- 
tion and  issuance  of  said  bonds  and  of  said  deed  of  trust ;  and  that  said 
deed  of  trust  and  said  bonds  are  subsisting  and  legal  obligations. 

Said  TITLE  INSURANCE  AND  TRUST  COMPANY  hereby 
certifies  that  said  deed  of  trust  has  been  delivered  and  recorded  as  required 
by  law,  and  that  said  company  has  issued  in  its  usual  form  and  under  its 
Order  No.  95,665,  a  policy  of  title  insurance  upon  the  title  to  that  certain 
property  described  in  said  policy,  insuring  the  owners  or  legal  holders  of 
said  bonds  against  loss  by  reason  of  any  defect  in  or  lien  or  incumjbrance 
on  the  title  to  the  property  described  in  said  policy,  subject  only  to  the 
written  and  printed  exceptions  contained  in  said  policy. 

TITLE  INSURANCE  AND  TRUST  COMPANY, 

Trustee. 
By ,  President. 

FORM  NO.  130— CASH  SUBSCRIPTION  BLANK. 

(NO  CERTIFICATE  FOR  LESS  THAN  3OO  SHARES  WILL  BE  SOLD.) 

CASH  CONTRACT. 

SUBSCRIPTION  BLANK. 

FOR   SPECIAL  ORGANIZATION    STOCK  OF 

THE  GOLDFIELD  RELIANCE  MINING  COMPANY. 
The  C.  M.  Sumner  Investment  Securities  Company, 
Kittredge  Building,  Denver  Colo. 

Gentlemen  : — I  hereby  subscribe  for Shares  of 

THE  GOLDFIELD  RELIANCE  MINING  COMPANY  Stock,  par  value 
$1.00  per  share,  full  paid  and  non-assessable,  with  no  individual  liability, 

at  the  special  price  of  4  CENTS  per  share,  for  which  I  enclose 

payment   in   full.     Issue   certificate   to 

Name 

Postomce  Address 

City  

State  

PRICE  OF  STOCK   SUBJECT  TO  CHANGE  WITHOUT  NOTICE. 

FORM  NO.  140— INSTALLMENT  SUBSCRIPTION  BLANK. 

(NO   CERTIFICATE   FOR   LESS   THAN    50O    SHARES   WILL  BE   SOLD.) 

INSTALLMENT  CONTRACT. 

SUBSCRIPTION  BLANK. 

FOR  SPECIAL  ORGANIZATION  STOCK  OF 

THE  GOLDFIELD  RELIANCE  MINING  COMPANY. 
The  C.  M.  Sumner  Investment  Securities  Company, 
Kittredge  Building,  Denver,  Colo. 

Gentlemen  : — I  hereby  subscribe  for Shares  of 

THE  GOLDFIELD  RELIANCE  MINING  COMPANY  Stock,  par  value 
$1.00  per  share,  full  paid  and  non-assessable,  with  no  individual  liability, 

at  the  special  price  of  5  CENTS  per  share,  for  which  I  enclose 

first  month's  payment,  the  balance  to  be  paid  in  ten  equal  monthly  pay- 
ments. Please  acknowledge  receipt  and  send  contract  for  delivery  of 
stock  on  completion  of  payments. 

Name 

Postoffice  Address 

City 

State  . . . 

PRICE  OF  STOCK  SUBJECT  TO  CHANGE  WITHOUT  NOTICE. 


REAL     ESTATE     SELF-TAUGHT  27 

FORM  NO.  141— CHATTEL  MORTGAGE. 

THIS  MORTGAGE.  Made  this  3Oth  day  of  January,  in  the  year  of  our 
Lord  One  Thousand  Nine  Hundred  Six  (1906)  by  C.  H.  Allen  and  Eliza 
A.  Allen,  his  wife,  of  the  County  of  Los  AngeleslA  State  oi  California; 
Mortgageors,  to  W.  A.  Wilson,  of  the  County  and  State  aforesaid,  Mort- 
gagee, 

WITNESSETH,  That  the  said  Mortgageors  mortgage  to  the  Mortgagee 
all  that  certain  personal  property  situated  and  described  as  follows,  to-wit ; 

All  the  furniture  and  furnishings  of  sixteen  rooms,  comprising  the 
rooming  house  at  No.  1306  Maple  Ave.,  in  the  City  of  Los  Angeles,  State 
of  California,  and  consisting  of  the  carpets,  rugs,  mattings,  bedsteads,  bed- 
springs,  mattresses^  dressers  or  bureaus,  washstands,  tables,  bedclothing 
and  kitchen  utensils,  as  per  inventory  thereof,  hereto  annexed  and  marked 
"Exhibit  A,"  as  security  for  the  payment  to  said  W.  A.  Wilson,  the  said 
Mortgagee,  of  Two  Hundred  Dollars,  gold  coin  of  the  United  States  of 
America,  on  or  before  the  3Oth  day  of  July,  in  the  year  Nineteen  Hundred 
Six,  with  interest  thereon  at  the  rate  of  13  per  cent  per  annum,  according 
to  the  terms  and  conditions  of  a  certain  promissory  note  of  even  date  here- 
with, and  in  the  words  and  figures  following,  to-wit : 

$200  Los  ANGELES,  CAL.,  Jan.  30,  1906. 

On  or  before  six  months  after  date,  for  value  received,  we  promise  to 
pay  W.  A.  Wilson  or  order,  the  sum  of  Two  Hundred  Dollars,  with 
interest  at  the  rate  of  thirteen  per  cent,  per  annum  from  date  until  paid, 
interest  payable  semi-annually,  and  if  not  so  paid  to 'be  compounded  semi- 
annually,  and  bear  the  same  rate  of  interest  as  the  principal ;  and  should 
the  interest  be  not  so  paid  then  the  whole  sum  of  principal  and  interest 
shall  become  immediately  due  and  payable  at  the  option  of  the  holder  of 
this  note.  Principal  and  interest  payable  in  gold  coin  of  the  United  States. 

Payable  at  Los  Angeles,  Californa. 

This  note  is  secured  by  a  chattel  mortgage  of  even  date  herewith. 

C.  H.  ALLEN, 
E.  A.  ALLEN. 

It  is  also  agreed  that  if  the  Mortgageors  shall  fail  to  maKe  any  payment 
as  in  the  said  promissory  note  provided,  then  the  Mortgagee  may  take 
possession  of  the  said  property,  using  all  necessary  force  so  to  do,  and 
may  immediately  proceed  to  sell  the  same  in  the  manner  provided  by  law, 
and  from  the  proceeds  pay  the  whole  amount  in  said  note  so  specified, 
together  with  all  payments  made  by  the  Mortgagee  for  insurance  on  the 
said  property,  and  all  costs  of  sale,  including  counsel  fees  not  exceeding 
twenty  per  cent,  upon  the  amount  due,  paying  the  overplus  to  the  said 
Mortgageors.  C.  H.  ALLEN  (SEAL) 

E.  A.  ALLEN        (SEAL) 
State  of  California,  County  of  Los  Angeles,  ss. 

Signed,  sealed  and  delivered  in  the  presence  of 

C.  H.  Allen  and  E.  A.  Allen,  the  Mortgageors  in  the  foregoing  mort- 
gage named,  and  W.  A.  Wilson,  the  Mortgagee  in  said  mortgage  named, 
being  duly  sworn,  each  for  himself  and  herself,  doth  depose  and  say  that 
the  aforesaid  mortgage  is  made  in  good  faith  and  without  any  design  to 
hinder,  delay  or  defraud  creditors. 

Subscribed  and  sworn  to  this  3Oth  day  of  January,  1906. 

W.  A.  WILSON, 
C.  H.  ALLEN, 
E.  A.  ALLEN, 
JAMES  J.  WHITE,  a  Notary  Public  in  and  for  said  County  df  Los  Angeles, 

State  of  California. 
(Notarial    Seal) 

(Acknowledgment) 


28  REAL    ESTATE     SELF-TAUGHT 

FORM  NO.  142— CROP  MORTGAGE. 

THIS  INDENTURE,  Made  the day  of  .....  in  the  year  of 

our  Lord  one  thousand  eight  hundred  and  ninety- BETWEEN 

of  the.  . .  .  County  of State  of  ...  .by  occupation  a Mortgageor 

.  .and  part.  .  of  the  first  part,  and  by  occupation  a ,  Mortgagee 

..and  part.,  of  the  second  part,  WITNESSETH :  That  the  said  Mort- 
gageor.., for  and  in  consideration  of  the  sum  of  ....DOLLARS,  „ 

to.,  in  hand  paid,  the  receipt  whereof  is  hereby  acknowledged,  do.  .by 
these  presents  grant,  bargain,  sell  and  convey  unto  the  said  part. .  of  the 
second  part,  and  to  .  .heirs  and  assigns  forever,  the  following  growing  Crop 

. .  .viz. :  the  Crop.  .  of now  being,  standing  and  growing  upon  that 

certain  piece  or  parcel  of  land,  situate,  lying  and  being  in  the  said  County 
of  . ..  .,  State  of.  ..  .,  and  particularly  described  as  follows,  viz.: 

TO  HAVE  AND  TO  HOLD  the  above-mentioned  and  described 
Crop.  .  subject  to  the  provisions  hereinafter  contained. 

PROVIDED,  NEVERTHELESS!,  and  these  presents  are  upon  the 
express  condition..,  that  if  the  said  part.,  of  the  first  part,  ....  heirs, 
executors,  administrators  or  assigns,  shall  well  and  truly  pay  or  ca,use 
to  be  paid,  unto  the  said  part.,  of  the  second  part,  ....  executors,  ad- 
ministrators or  assigns,  the  sum  of Dollars, on  the with 

interest  thereon  at  the  rate  of.... per  cent  per from  the  date  hereof, 

until  paid,  according  to  the  true  intent  and  meaning  of.  ..  .certain  Prom- 
issory Note,  .dated as  by  said  Promissory  Note. .,  reference  there- 
unto being  had,  will  more  fully  appear,  then  these  presents  shall  be  void. 
And  the  part.  .  of  the  first  part  do.  .  hereby  covenant  and  agree  to  and  with 
the  said  part.,  of  the  second  part,  ....heirs  and  assigns,  that.  .he.  .will 
well  and  carefully  tend,  take  care  of  and  protect  the  said  Crop,  .while 
growing  and  until  fit  for  harvest,  and  then  faithfully  and  without  delay, 
harvest,  thresh,  clean  and  sack  the  same,  and  deliver  the  same  immediately 
into  the  possession  of  the  said  part.  .  of  the  second  part,  or.  . . .  assigns,  to 
be  by. . .  .held  and  disposed  of  for  the  payment  of  the  debt  hereby  secured; 
that  in  default  of  either  of  the  above  acts  to  be  done  by  the  said  part. .  of 
the  first  part,  the  said  part.  .  of  the  second  part,  or.  . .  .assigns,  may  enter 
upon  the  premises  and  take  all  necessary  measures  for  the  protection  of 
said  Crop..,  and  may  retain  possession  thereof,  harvest,  thresh  and  sack 
the  same;  and  all  expenses  so  incurred,  and  all  that  may  become  necessary 
in  the  keeping  and  care  of  said  Crop.  .,  as  well  as  the  hauling.,'  storing  and 
delivery  thereof,  shall  be  secured  by  this  Mortgage,  and  shall  be  first  pay- 
able in  United  States  Gold  Coin,  out  of  the  money  realized  from  the  sale 
of  said  Crop.  .  ;  that  said  part. .  of  the  second  part,  or. ..  .assigns.  ..  .shall 
and  may  at  all  times  enter  into  the  premises  to  view  the  same,  or  to  tajce 
any  measures  necessary  for  the  protection  of  said  Crop..,  or. ..  .interests 
therein,  and  that  upon  harvesting  thereof,.  ..  .shall  be  entitled  to  the  im- 
mediate possession  of  the  same,  and  may  haul  and  store  the,  same,  at  the 

expense  of  the  said  part.,  of  the  first  part,  and do.  .for  the  purposes 

aforesaid,  make,  constitute  and  appoint  the  said  part.  .  of  the,  second  part, 
and.  ..  .assigns,.  ..  .true  and  lawful  Attorney,  .irrevocable,,  with  full  power 
to  enter  upon  said  premises  and  take  possession  of  said  Crop.  .,  and  take 
care  of,  protect,  thresh,  clean  and  sack  the  same,  in  case  of  any  default 
on.  . .  .part  of  the  covenants  herein  contained;  and.  . .  .do.  .further  authorize 
...  .or.  ..  .assigns  to  take  possession  of  said  Crop.,  when  harvested,  to 
haul  and  store  the  same,  to  sell  and  dispose  of  the  same,  or  any  part  there- 
of, at  such  time  or  times,  and  for  such  sum  or  sums  of  money  as may 

deem  proper,  and  for  the  best  advantage  of  all  concerned,  and  out  of  the 
proceeds  of  such  sale,  first,  to  retain  the  costs  and  charges  thereof,  and 
any  and  all  expenses  by  the  part. .  of  the  second  part  incurred  in  the  care 
and  protection,  harvesting,  hauling  or  storing  the  same,  and  commission 


REAL     ESTATE    SELF-TAUGHT  29 

for  selling  the  same;  second,  to  apply  the  residue  to  the  payment  of  said 

Note..,  rendering  the  overplus,  if  any  there  be,  to  the  said  part.,  of  the 

first  part,. . .  .or. . .  .assigns. 

IN  WITNESS  WHEREOF,  the  said  part.,  of  the  first  part  ha.... 

hereunto  set hand,  .and  seal,  .the  day  and  year  first  above  written. 

Signed,  Sealed  and  Delivered  in  the  presence  of 

(SEAL) 

(SEAL) 

(SEAL) 

STATE  of County  of ss. 

the  Mortgageor.  .in  the  foregoing  Mortgage  named,  and the  Mort- 
gagee, .in  said  Mortgage  named,  each  being  duly  sworn;,  each  for  himself, 
doth  depose  and  say:  that  the  aforesaid  Mortgage  is  made  in  good  faith 
and  without  any  design  to  hinder,  delay,  or  defraud  any  creditor  or 
•creditors. 

Subscribed  and   sworn   to   before   me,   this.... day   of 189..,   at  the 

County  of 


FORM  NO  137— HABENDUM  AND  RENT  CLAUSE. 

To  HAVE  AND  TO  HOLD  the  said  above  mentioned  and  described  prem- 
ises, with  the  appurtenances,  unto  the  said  party  of  the  second  part,  his 
executors,  administrators  and  assigns,  from  the. ..  .day  of. .. .,  one  thous- 
and nine  hundred  and ,  for  and  during  the  full  term  of years  thence 

next  ensuing,  and  fully  to  be  completed  and  ended.  Yielding  and  paying 
therefor,  unto  the  said  party  of  the  first  part,  his  heirs  or  assigns,  monthly 
.and  every  month,  during  the  said  term  hereby  granted,  the  monthly  rent  or 

sum  of dollars,  Gold  Coin  of  the  United  States  of  America,  on  the 

day  in  each  and  every  month  during  the  said  term  :     Provided  always, 

nevertheless,  that  if  the  monthly  rent  above  reserved,  or  any  part  thereof, 
shall  be  behind  or  unpaid  on  any  day  of  payment  whereon  the  same 
ought  to  be  paid,  as  aforesaid;  or  if  default  shall  be  made  in  any  of  the 
covenants  herein  contained,  on  the  part  and  behalf  of  the  said  party 
of  the  second  part,  his  executors,  administrators  and  assigns,  to  be  paid, 
kept  and  performed,  then  and  from  thenceforth  it  shall  and  may  be 
lawful  for  the  said  party  of  the  first  part,  his  heirs  or  assigns,  into  and 
upon  the  said  premises,  and  every  part  thereof,  wholly  to  re-enter,  and 
the  same  to  have  again,  repossess  and  enjoy,  as  in  his  or  their  former 
estate,  any  thing  hereinbefore  contained  to  the  contrary  thereof  in  any 
wise  notwithstanding. 


FORM     144—  COVENANT    AS     TO  INSURANCE,     AND     APPLI- 
CATION OF  SAME,  ON  BUILDINGS  ON  LEASED  GROUND. 

The  lessee  does  covenant  and  agree  to  and  with  the  lessor,  that  it, 
the  lessee,  will  keep  insured,  during  the  said  demised  term,  any  atod  all 
buildings,  or  improvements  that  may  be  built  or  placed  upon  said  premises, 
in  a  good  and  responsible  company  or  companies  to  the  amount  of  not 
less  than  eighty  (80%)  per  cent,  of  the  cost  of  the  buildings,  provided 
insurance  in  good  and  solvent  companies  can  be  obtained  to  that  percent- 
age; if  not,  then  to  the  highest  percentage  that  can  be  obtained,  not 
exceeding  eighty  (8p%)  per  cent,  and  all  policies  issued,  and  renewals 
thereof,  of  all  such  insurance  upon  the  said  buildings  or  improvements  to 
the  amount  of  any  per  cent,  of  the  cost  of  the  buildings,  are  to  be  assigned 


30  REAL     ESTATE     SELF-TAUGHT 

to,  and  in  case  of  loss,  be  made  payable  to,  the Trust 

Company  of  (hereby  designated  as 

trustee)  for  the  purposes  hereinafter  named,  to  wit: — the  same  to  be 
held  by  the  said  Trust  Company  as  trustee  as  additional  security  for 
the  amount  of  rent  that  might  become  due  under  the  said  lease  and 
for  the  rebuilding  herein  provided  for.  And  the  lessee  covenants  and 
agrees,  in  the  event  of  the  total  destruction  of  said  premises  by  fire, 
that  immediately  upon  the  payment  of  the  insurance  moneys  accruing  to 
said  Trust  Company,  it,  the  said  lessee,  will  forthwith,  and  immediately 
advance  and  pay  to  said  Trust  Company  the  difference  between  the  amount 

of   insurance    so    received   upon    said  policies   and   the    sum   of 

thousand  dollars,  the  said  sum  of thousand  dollars  to  constitute  a 

trust  fund  for  the  payment  of  the  rent  hereunder,  as  well  as  for  the 
rebuilding  of  said  building;  and  said  Trust  Company,  in  case  said  build- 
ings or  improvements  shall  at  any  time  or  times  be  destroyed  by  fire, 
during  said  demised  term,  shall  pay  to  said  lessee,;  upon  proper  architect's 
certificates,  so  much  of  the  said  trust  fund  in  such  sum  or  sums  as  may  be 
necessary  to  pay  for  the  rebuilding  of  said  building;  and  the  lessee  agrees 
and  covenants  that  said  sum  shall  be  so  expended  in  the  construction  of  a 
new  building  upon  said  premises,  and  that  it  will  rebuild  the  same.  It 
is  furthermore  covenanted  and  agreed  that  the  policies  of  insurance  upon 
said  premises  shall  be  subject  to  the  examination  of  the  lessor,  and  the 
lessor  shall  have  the  right  to  reject  any  of  said  policies  and  in  the  event  of 
such  rejection,  the  lessee  agrees  to  substitute  new  policies  in  like  amount 
in  companies  the  said  lessor  may  approve.  In  the  event  that,  owing  to 
insurance  regulations  then  or  thereafter  in  force,  said  Insurance  moneys 
cannot  be  made  payable  to  said  Trust  Company,  on  in  the  event  said  Trust 
Company  shall  be  unwilling,  or  should  be  unable,  or  should  decline,  to 
act,  then  said  moneys  shall  be  payable  to  such  person  or  corporation  and 
in  such  manner  as  may  be  permitted  by  said  insurance  regulations,  but  in 
such  a  way  as  that  all  moneys  paid  or  recovered  on  account  of  said  policies 
shall  constitute  a  trust  fund  as  hereinbefore  expressly  provided. 

And  it  is  further  understood  and  agreed  that  no  interest  is  to  be 
paid  on  said  insurance  money  by  said  Trust  Company  during  the  time 
said  money  remains  in  its  possession ;  and  it  is  further  agreed  that  any  and 
all  moneys  which  the  said  Trust  Company  shall  receive  by  reason  of  any 
loss  or  destruction  of  the  said  buildings  or  improvements,  is  hereby 
constituted  a  trust  fund,  to  be  used  for  the  rebuilding  of  the  buildings  and 
improvements  upon  the  said  premises  as  hereinbefore  provided  for.  AncT 
it  is  further  agreed  that  said  Trust  Company  shall  properly  disburse  such 
moneys  and  use  same  toward  rebuilding  the  buildings  and  improvements 
upon  the  said  premises  as  herein  provided  for ;  but  it  is  expressly  under- 
stood and  agreed  that  this  provision  shall  not  prejudice  the  provisions  in 
this  lease  contained,,  that  such  insurance  money  shall  stand  as  additional 
security  for  the  rent  herein  provided  for.  And  it  is  further  understood 
and  agreed  that  neither  the  lessor  nor  said  Trust  Company  shall  be 
responsible  for  the  collection  or  noncollection  of  any  insurance  money 
or  in  any  event  but  only  for  such  insurance  money  as  shall  come  to 
its  hands;  provided,  however,  that  said  Trust  Company  shall  take  such 
steps  as  said  lessee  may  direct,  either  by  suit  or  otherwise,  for  the 
collection  of  said  insurance  moneys,  should  the  insurance  company  or 
companies  for  any  reason  decline  to  pay  any  loss ;  and  the  lessee  shall 
advance  all  costs  and  expenses  of  such  proceedings  and  shall  fully 
indemnify  said  Trust  Company  from  any  loss,  damage,  costs  and  expense 
resulting  therefrom.  It  is  further  understood  that  the  said  insurance 
moneys  shall  be  applicable  as  to  the  payment  of  rent  that  may  be  due 
hereunder  and  shall  at  all  times  be  subject  to  the  payment  of  such  rental. 

And  the  said  lessee  covenants  and  agrees  that  if  said  buildings  and 


REAL     ESTATE     SELF-TAUGHT  31 

improvements,  or  any  part  thereof,  shall  at  any  time  or  times  during  the 
continuance  of  said  term  be  destroyed  or  damaged  by  fire  or  other 
casualty,  and  as  often  as  any  building  or  improvements  on  said  premises 
shall  be  destroyed  or  damaged  by  fire  or  other  casualty,  said  lessee  shall 
rebuild  and  replace  the  same  upon  the  same  general  plan  and  dimensions 
as  before  the  said  fire  or  casualty,  the  construction  so  rebuilt  and  repaired 
to  be  of  the  value  of  not  less  than.  . .  .thousand  dollars,  and  shall  have  the 
same  rebuilt  and  ready  for  occupancy  within  twelve  months  from  each 
loss  or  destruction,  at  its  own  expense,  provided,  thavt  in  case  such"  build- 
ing shall  be  destroyed  or  damaged  so  near  the  end  of  said  term  that  there 
shall  not  be  ample  time  (which  time  shall  not  exceed  eighteen  months) 
to  rebuild  or  repair  the  same  before  the  end  of  said  term,  then  the  insur- 
ance on  the  said  buildings  shall  belong  to  and  be  paid  to  the  said  lessee, 
except  so  much  thereof  as  shall  be  equal  to  the  sum  due  and  to  become 
due  the  said  lessor  under  the  terms  of  this  lease,  which  amount,  if  any^ 
shall  be  paid  to  the  said  lessor;  and  in  such  case  this  leasehold  interest 
shall  be  determined ;  and  it  is  covenanted  and  agreed  that  all  and  every 
sum  or  sums  of  money  which  shall  be  recovered  or  received  by  said 
lessee  for  and  in  respect  of  said  insurance  upon  said  building  or  buildings 
shall  be  laid  out  and  expended  by  it  in  rebuilding  or  repairing  said  buildings 
or  such  parts  thereof  as  shall  be  damaged  as  aforesaid,  and  in  case  the 
lessee  shall  not  have  advanced  the  funds  necessary  to  bring  said  insurance 
moneys  up  to.  ..  .thousand  dollars,  it  shall  be  lawful  for  the  lessor  to 
declare  this  lease  ended,  and  into  said  premises  to  re-enter  as  herein- 
before provided;  and  any  part  of  any  building  or  buildings  remaining  on 
said  premises  shall  at  once  be  forfeited  to  said  lessor  and  no  compensa- 
tion therefore  shall  be  allowed  to  said  lessee,  and  any  balance  of  insurance 
money  remaining  in  the  hands  of  the  said  Trust  Company  shall  be  forfeited 
to  him  as  liquidated  and  ascertained  damages,  and  not  as  a  penalty  or 
penal  sum  or  in  the  nature  thereof.  And  it  is  understood  and  agreed,  in 
case  of  a  fulfillment  by  said  lessee  of  its  covenants  in  this  lease,  that  any 
surplus  of  any  and  all  insurance  moneys,  after  the  use  of  the  same  for  the 
purpose  provided  in  this  lease,  shall  belong  to  and  be  paid  over  to  the  said 
lessee,  except  in  the  event  of  the  destruction  of  said  building,  within 
eighteen  months  of  the  expiration  of  this  term,  when,  after  the  deducti'on 
of  the  rental  to  grow  due,  the  balance  of  the  insurance  money  shall  be 
paid  to  the  lessee. 


FORM    NO.    145— COVENANT   IN    LEASE    THAT   LESSOR    MAY 

POST  NOTICES  THAT  HE  WILL  NOT  BE  RESPONSIBLE 

FOR  CONSTRUCTION,  ALTERATION  AND  REPAIR 

OF  IMPROVEMENTS. 

The  lessor  shall  have  the  right,  and  hereby  reserves  the  right,  to 
enter  upon  said  demised  premises  on  or  before  or  about  the  time  or 
during  the  time  of  the  construction  of  said  new  building,  and  to  post, 
print,  paint,  or  place  thereon,  in  a  conspicuous  place  or  places,  notices  of 
such  character  and  size  as  the  lessor  may  determine,  and  to  keep  them  so 
maintained,  to  the  effect  that,  he,  the  lessor  and  owner  will  not  be  re- 
sponsible for  the  construction,  alteration  and  repair,  or  intended  construc- 
tion, alteration  or  repair,  of  any  building  or  improvement  upon  the  said 
property ;  or  to  take  any  other  act  that  may  be  required  by  law  or  by 
Section  1192  of  the  Code  of  Civil  Procedure  to  exempt  said  lessor  from 
liability  by  reason  of  the  construction  thereof. 


32  REAL  ESTATE  SELF-TAUGHT 

FORM  NO.  146— COVENANT  IN  LEASE  AS  TO  APPRAISAL 

OF.  AND  PAYMENT  FOR,  BUILDINGS  ON 

LEASED  GROUND. 

It  is  further  covenanted  and  agreed  that  unless  the  respective  parties 

herein  shall  have  agreed  in  writing  ninety  days  before  the   day 

of  •  •  •  • A.  D.,  19. .,  (provided  this  lease  is  not  sooner 

determined  in  any  of  the  ways  herein  mentioned)  upon  the  actual  cash 
value  of  any  and  all  buildings  and  any  and  all  improvements  that  are 
situated  and  standing  upon  said  premises  (exclusive  of  and  not  including 
the  value  of  the  land  or  ground)  then  an  appraisal  shall  be  made  of  the 
then  actual  cash  value  of  any  and  all  such  buildings  and  improvements  at 
the  time  of  the  appraisal,  said  appraisal  to  be  made  by  three  disinterested 

free-holders   in   the   City  of ,   owning   land   in   fee   in 

that  part  of  said  City,  and  not  related  to  any  of  the  parties  in  interest  by 
consanguinity  or  affinity,  and  they  shall  be  selected  in  the  following  manner, 
that  is  to  say :  The  lessee  shall  select  one  appraiser  and  notify  the  lessor 
in  writing  of  the  person  so  chosen,  and  the  lessor  shall  thereupon,  or  within 
ten  (10)  days  thereafter,  choose  one  appraiser  and  notify  the  lessee  in 
writing  of  the  person  chosen,  and  the  two  persons  so  chosen  shall,  within 
ten  (10)  days  thereafter,  choose  a  third  appraiser,,  and  the  three  persons 
so  chosen,  or  any  two  of  them,  shall  proceed  forthwith  to  appraise  the 
actual  cash  value  of  any  and  all  buildings  and  improvements  a'foresaid, 
exclusive  of  and  not  including  the  value  of  the  land  or  ground  at  the  time 
of  the  appraisement,  and  shall  determine  whether  or  not  the  buildings  have 
at  any  time  been  used  for  a  purpose  likely  to  weaken  or  injure  them  beyond 
ordinary  wear  and  tear  and  deterioration,  and  shall,  within  ten  (10)  days 
thereafter  notify,  in  writing,  the  said  lessor  and  lessee  of  the  appraisal  so 
made  by  them;  and  the  decision  of  the  said  appraisers,  or  of  any  two  of 
them,  shall  be  final  and  binding.  And  in  case  of  the  refusal  of  either  of 
the  parties  hereto  to  appoint  an  appraiser  as  herein  provided,  or,  in  case  ot 
the  death,  inability,  neglect  or  refusal  to  act  of  either  of  the  appraisers 
so  appointed  by  the  said  parties  hereto,  or  of  the  third  appraiser  appointed 
by  the  said  appraisers  chosen  by  the  parties  hereto,  as  hereinbefore  pro- 
vided* or,  in  case  the  appraisers  appointed  by  the  said  parties  hereto  shall 
neglect  or  refuse  to  appoint  or  be  unable  to  agree  upon  a  third  appraiser, 
as  hereinbefore  provided,  or,  in  case  the  three  appraisers  are  appointed, 
that  any  two  of  them  shall  be  unable  to  agree  upon  an  appraisement  as 
hereinbefore  provided,  then,  in  any  such  event,  either  of  the  said  parties 
hereto,  or  the  party  or  parties  who  shall  succeed  to  the  interest  of  the  said 
parties  hereto  under  the  terms  of  this  lease,  shall  have  the  right  to  apply 
to  any  judge  of  any  court  of  Record  having  chancery  Jurisdiction  within 

the  said  county  of ; for  the  appointment 

of  one  or  two  or  three  appraisers  as  the  circumstances  demand ;  and  any 
judge  to  whom  such  application  shall  have  been  made,  shall,  upon  satis- 
factory evidence  being  furnished  that  due  notice  of  such  application  has 
"been  given  to  the  other  party  in  interest,  have  the  power  to  appoint  one 
or  two  or  three  appraisers,  as  the  circumstances  demand,  of  like  qualifica- 
tions as  herein  provided,  and  the  appraisers  so  appointed  shall  have 
the  same  qualifications,  powers  and  duties  as  though  they  had  been  selected 
as  hereinbefore  provided.  Said  appraisers  shall  take  into  consideration,  in 
estimating  the  value  of  said  building,  such  sums  as  may  have  been  expended 
under  any  party  wall  agreements  theretofore  entered  into  by  ttie  said 
lessee  and  the  adjacent  property  owners. 

And  it  is  hereby  Understood,  Covenanted  and  Agreed  that  no  appraisal 
shall  be  invalid  by  reason  of  not  being  made  within  the  time  provided  by 
this  lease,  and  that  the  appraised  value  shall  in  no  case  exceed  what  it 
would  then  cost  to  erect  and  complete  such  buildings  and  improvements 


REAL     ESTATE     SELF-TAUGHT  33 

less  the  then  depreciation  thereof  occasioned  by  wear  and  tear,  age  and 
decay;  but  in  no  event  shall  said  appraisement  exceed  nor  shall  said 
lessor  be  under  any  obligation  or  liability  to  pay  hereunder  a  sum  ex- 
ceeding   dollars. 

And  the  said  lessor  covenants  and  agrees  to  purchase  on  the  

day  of ,  in  the  year  of  our  Lord  one  thousand 

hundred  and ,  (unless  this  lease  is  sooner  determined  .in  any  of  the 

ways  herein  provided,)  the  said  building  and  improvements  situated  and 
standing  upon  the  said  premises,  (exclusive  o>f  and  not  including  the 
value  of  the  land  or  ground)  at  their  actual  cash  value,  so  agreed  upon 
and  determined  as  aforesaid;  said  purchase  money  to<  be  payable  one-half 

in  cash  and  the  balance  in  one  (i)  year  from  the  first  day  of ,  in 

the  year  of  our  Lord  one  thousand hundred ,  with  interest 

thereon  at  the  rate  of  six  per  cent,  per  annum,  said  deferred  payment  to  be 
secured  by  a  first  mortgage  on  said  premises  and  improvements,  or  by 
such  other  securities  as  may  be  satisfactory  to  the  said  lessee;  or,  if  the 
said  lessor  so  desires,  he  may  pay  the  entire  sum  of  said  purchase  price 
in  cash. 

And  the  said  lessee  covenants  and  agrees  that  at  the  time  and  upon 

the  day  of  such  purchase  to-wit :  Upon  the day  of ,  at  twelve 

o'clock  noon,  it  will  convey  all  of  said  buildings  and  improvements  to  the 
said  lessor,  by  a  good  and  sufficient  deed  of  conveyance*  and  will  immedi- 
ately surrender,  yield  and  deliver  up,  peaceably,  said  described  premises 
in  as  good  condition  as  when  the  same  was  entered  upon  by  the  said 
lessee,  and  any  and  all  buildings  and  improvements  thereon  in  a  good  and 
perfect  condition,  ordinary  wear  and  tear,  depreciation  and  decay,  excepted. 
It  being,  however,  fully  understood  and  agreed  by  and  Between  the  parties 
hereto  that  it  is  a  condition  of  this  lease  that  all  buildings  and  improve- 
ments and  fixtures  upon  the  said  premises  at  the  termination  of  said 
demised  term,  providing  this  lease  is  not  sooner  determined,  shall,  at 
and  upon  the  date  of  the  expiration  of  said  demised  term,  revert  to  and 
become  the  exclusive  property  of  and  be  vested  in  the  said  lessor,  after 
any  such  deed  of  conveyance  from  the  said  lessee  to  the  said  lessor;  but 
this  condition  is  not  to  be  understood  or  to  be  so  construed  as  to  waive 
the  right  of  the  lessee  to  the  payment  to  it  of  the  actual  cash  value  of  the 
said  improvements  upon  the  said  premises,  to  be  ascertained  and  determined 
as  aforesaid.  And  it  is  further  understood  and  agreed^  in  the  event  that 
the  value  of  the  buildings  shall  not  have  been  agreed  upon  or  ascertained 
prior  to  the  expiration  of  the  said  demised  term,  then  and  in  such  case 
said  lessee  shall  have  the  first  and  valid  lien  upon  said  premises  for  the 
amount  of  such  value  notwithstanding  the  surrender  of  the  possession 
thereof  to  the  said  lessor  as  above  provided,  together  with  interest  thereon 
at  the  rate  of  six  per  cent.  (6%)  per  annum  from  the  date  of  the  deter- 
mination of  said  demised  term,  until  so  paid  or  secured;  and  in  default 
thereof  said  lessee  may  enforce  its  lien  therefor. 

FORM  NO.  I47-COVENANT  FOR  QUIET  ENJOYMENT. 

And  the  said  party  of  the  first  part,  for  himself,  his  heirs,  and  assigns, 
doth,  covenant  and  agree,  by  these  presents,  that  the  said  party  of  the 
second  part,  his  executors,  administrators  or  assigns,  upon  paying  the  said 
monthly  rent  above  reserved,  and  performing  the  covenants  and  agree- 
ments aforesaid,  on  his  and  their  part,  the  said  party  of  the  second  part, 
his  executors,,  administrators  and  assigns,  to  be  paid,  kept  and  performed, 
shall  and  may  at  all  times  during  the  term  hereby  granted,  peaceably  and 
quietly  have,  hold  and  enjoy  the  said  demised  premises,  without  any  let, 
suit,  trouble  or  hinderance,  of  or  from  the  said  party  of  the  first  part,  his 
heirs  or  assigns,  or  any  other  person  or  persons  whosoever. 


34  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  I48-COVENANT  TO  PAY  RENT. 

And  the  said  party  of  the  second  part,  'for  himself  and  his  heirs, 
executors,  administrators  and  assigns,  doth  covenant  and  agree,  to  and 
with  the  said  party  of  the  first  part,  his  heirs  and  assigns,  by  these  presents, 
that  the  said  party  of  the  second  part,  his  executors,,  administrators  or  as- 
signs, shall  and  will  monthly  and  every  month  during  the  term  granted, 
well  and  truly  pay,  or  cause  to  be  paid,  unto  the  said  party  of  the  first 
part,  his  heirs  or  assigns,  the  said  monthly  rent  above  reserved,  on  the 
days,  and  in  the  manner  limited  and  prescribed,  as  aforesaid,  for  the  pay- 
ment thereof,  without  any  deduction,  fraud  or  delay,  according  to  the  true 
intent  and  meaning  of  these  presents :  And  that  on  the  last  day  of  the 
said  term,  or  other  sooner  determination  of  the  estate  hereby  granted,  the 
said  party  of  the  second  part,  his  executors,  administrators  or  assigns, 
shall  and  will  peaceably  and  quietly  leave,  surrender  and  yield  up,  unto  the 
said  party  of  the  first  part,  his  heirs  or  assigns,  all  singular  the  said 
demised  premises. 


FORM  NO.  149— COVENANT  NOT  TO  ASSIGN  LEASE  WITHOUT 
WRITTEN  CONSENT  OF  LESSOR. 

And  said  party  of  the  second  part  further  covenants  and  agrees,  that 
he  will  not  assign  this  lease  or  under  let  or  sublet  said  premises,  or  any 
part  thereof,  to  any  person  or  persons  whomsoever,  without  first  obtaining 
the  written  consent  of  said  party  of  the  first  part ;  and  notice  is  hereby 
given  that  any  assignment  of  this  lease  or  underletting  of  said  premises 
not  in  strict  conformity  to  this  provision  shall  be  absolutely  null  and  void : 
Provided,  however,  that  the  consent  of  said  party  of  the  first  part  shall 
not  be  unreasonably  nor  capriciously  withheld. 


FORM  NO.  150— COVENANT  AS  TO  HEIRS  AND  ASSIGNS. 

It  is  mutually  covenanted  and  agreed  by  and  between  the  parties 
hereto,  that  each  of  the  expressions,  phrases,  terms,  conditions,  provisions, 
stipulations  admissions,  promises,  agreements,  requirements  and  obliga- 
tions of  this  lease  shall  extend  to  and  bind  and  inure  to  the  benefit  of  (as 
the  case  may  require)  not  only  the  parties  hereto,  but  each  and  every  df 
their  heirs,  executors,  administrators  and  assigns  of  the  respective  parties 
of  the  first  and  second  part  hereto ;  and  wherever  in  this  lease  a  reference 
to  either  of  the  parties  hereto  is  made,  such  reference  shall  be  deemed  to 
include,  wherever  applicable,  also  a  reference  to  the  heirs,  legal  repre- 
sentatives and  assigns  of  such  party  the  same  as  if  in  every  case  expressed ; 
and  all  the  conditions  and  covenants  contained  in  this  lease  shall  be  con- 
strued as  covenants  running  with  the  land. 


FORM  NO.  151— COVENANT  AS  TO  RIGHTS  OF  THE  PARTIES 
IN  EVENT  OF  DESTRUCTION  OF  PREMISES  BY  FIRE. 

If,  during  the  term  of  this  lease,  the  building  or  premises  are  destroyed 
by  fire,  or  other  action  of  the  elements,  or  partially  destroyed  so  as  to 
render  the  premises  demised  wholly  unfit  for  occupancy,  or  if  they  shall 
be  so  badly  injured  that  they  cannot  be  repaired  within  sixty  days  after 
the  happening  of  the  injury,  then  this  lease  shall  cease  and  become  null  and 
void  from  the  date  of  such  damage  or  destruction,  and  the  lessee  shall 


REAL     ESTATE     SELF-TA.UGHT  35 

immediately  surrender  said  premises,  and  all  interests  therein,  to  said 
lessor^  and  said  lessee  shall  pay  rent  within  this  term  only  to  the  time  of 
such  surrender;  and  in  case  of  destruction  or  partial  destruction  as  above 
mentioned,  the  said  lessor  may  re-enter  and  re-possess  said  premises  dis- 
charged of  this  lease,  and  may  remove  all  parties  therefrom;  and  if  said 
premises  shall  be  repairable  within  sixty  days  from  happening  of  said 
injury,  then  said  rent  shall  not  run  or  accrue  after  such  injury  and  while 
the  process  of  repairs  is  going  on,  and  the  lessor  shall  repair  the  same 
with  all  reasonable  speed,  and  the  rent  shall  recommence  immediately  after 
said  repairs  shall  be  completed;  but  if  said  premises  shall  be  so  slightly 
injured  by  fire  or  the  elements  as  not  to  be  rendered  unfit  for  occupancy, 
then  the  said  lessor  agrees  that  the  same  shall  be  repaired  with  reasonable 
promptitude ;  and  in  that  case  the  rent  accrued  and  accruing  shall  not 
cease  or  determine.  In  no  case  shall  the  lessee  be  entitled  to  compensa- 
tion or  damages  on  account  of  any  inconvenience  or  annoyance,  or  destruc- 
tion by  fire  or  earthquakes  or  by  other  actions  of  the  elements,  or  by  recon- 
struction or  repair  of  any  portion  of  said  building;  nor  for  any  damage 
to  or  loss  of  property  in  said  premises  from  any  cause. 


FORM  NO.  152— COVENANT  AS  TO  REPAIRS. 

The  lessor  shall  not  be  required  to  make  any  repairs  on  said  premises, 
and  shall  not  be  responsible  for  any  damage  to  the  demised  premises  or 
property  contained  therein,  by  reason  of  the  leakage  of  water  from  the 
roof,  or  pipes,  or  stoppage  of  pipes,  or  stoppage  or  overflow!  of  sewers,  or 
leakage  or  overflow  from  any  cause ;  but  the  lessor  will  cause  the  defects 
to  be  remedied  with  reasonable  diligence  by  a  mechanic  after  receiving 
notice  thereof;  but  if  said  mechanic  fails  to  make  said  repairs  properly 
and  the  lessee  sustain  loss  or  damage  thereby  before  the  lessor  is  notified 
of  such  failure  and  has  reasonable  time  to  have  the  same  corrected,  thjen 
the  lessee  hereby  waives  all  claims  therefore  against  the  lessor  and  agrees 
to  look  to  said  mechanic. 


FORM  NO.  153— COVENANTS  BY  LESSEE  OF  FLAT  BUILDING. 

And  for  the  consideration  aforesaid,  the  said  party  of  the  second 
part  further  covenants  and  agrees  with  said  party  of  the  first  part,,  his  exe- 
cutors, administrators,  and  assigns,  to  take  good  care  of  the  apartments 
demised  and  their  fixtures,  and  to  commit  and  suffer  no  waste  therein; 
that  no  changes  or  alterations  of  the  premises  shall  be  made,  or  partitions 
erected  nor  walls  papered,  without  the  consent  in  writing  of  said  lessor; 
that  said  second  party  will  make  all  repairs  required  to  the  walls,  ceilings, 
paint,  plastering,  plumbing  work,  pipes,  and  fixtures  belonging  to  said 
apartments,  whenever  damage  or  injury  to  the  same  shall  have  resulted 
from  misuse  or  neglect ;  that  said  premises  shall  not  be  used  as  a  "board- 
ing" or  "lodging"  house,  nor  for  a  school,  or  to  give  instruction  in  music 
or  singing,,  and  none  of  the  rooms  shall  be  offered  for  lease  by  placing 
notices  on  any  door,  window  or  wall  of  the  building,  nor  by  advertising  the 
same  directly  or  indirectly,  in  any  newspaper,  or  otherwise ;  that  there 
shall  be  no  lounging,  sitting  upon,  or  unnecessary  tarrying  in  or  upon  the 
front  steps,  the  sidewalk,  railing,  stairways,  halls,  landing,  or  other  public 
places  of  the  said  building  by  the  said  lessee,  members  of  the  family,  or 
other  persons  connected  with  the  occupancy  of  the  demised  premises ;  that 
no  provisions,  milk,  ice,  marketing,  groceries,  or  like  merchandise,  shall 
be  taken  in  to  the  demised  premises  through  the  front  door  of  said  build- 


36  REAL     ESTATE     SELF-TAUGHT 

ing;  that  said  lessee,  and  those  occupying  under  said  lessee,  shall  not  in- 
terfere with  the  furnace,  heating  apparatus,  or  with  the  gas  or  other 
lights  of  said  building  which  are  not  within  the  apartments  hereby  demised, 
nor  with  the  control  of  any  of  the  public  portions  of  said  building;  that 
the  said  lessee  and  those  occupying  under  said  lessee  will  comply  with, 
and  conform  to  all  reasonable  rules  or  regulations  that  the  lessor  may 
make  for  the  protection  of  the  building  or  the  general  welfare  and  comfort 
of  the  occupants  thereof ;  and  will  conform  to  and  comply  with  the  notices 
and  requirements  posted  in  the  halls  of  said  building.  And  that  said 
party  of  the  first  part  shall  have  the  right  to  put  up  notices  to  rent  on  the 
hall  doors,  and  to  show  said  premises  between  the  hours  of  10  and,  12 
A.  M.  of  each  day,  for  thirty  days  prior  to  the  expiration  of  this  lease. 


FORM  NO.  154— A  LOOSE  CONTRACT  FOR  SALE  OF  LOTS. 

Contract  No 

RECEIVED  OF   the  sum  of. ...   Dollars   ...  .as  a  deposit  to 

secure  the  purchase  of  the  following  described  lots  of  the TRACT, 

Lot    numbered of    block    numbered according    to    the    Preliminary 

Maps,  made  by from  which  plan  of  sub-division  the  Official  Map 

will  be  made  to  conform  as  close  as  practical;  subject  to  the  following 
conditions : 

The  said  deposit  is  accepted  only  as  Rent  of  said  property  for  thfc 
period  of  one  month  from  date,  and  the  benefits  of  this  contract  are  con- 
ditioned on  the  further  sum  of. ..  .Dollars,  being  paid  as  monthly  rent 
to  be  paid  on  the. . .  .day  of  each  month  hereafter  for. . .  .months,,  with  ex- 
act punctuality,  as  time  is  the  essence  of  this  agreement;  then,  and  in 
consideration  of  having  paid  said  rent  for  said  period,  upon  payment  of 
Two  Dollars,  a  grant  deed  is  to  be  furnished  to  the  above  named  party, 
conveying  a  perfect  title  to  the  above  described  property,  free  and  clear  of 
all  incumbrances  on 190.  .,  or  we  will  refund  all  money  paid  to- 
gether with  6  per  cent,  per  annum  interest  added. 

Prior  to  the  delivery  of  deed,  said  above  named  party  has  the  right  to 
examine  Certificate  of  Title  to  make  certain  that  a  perfect  title  to  said 
property  will  be  conveyed,  free  and  clear  of  all  encumbrances  at  time  when 
deed  is  delivered,  or  we  will  refund  all  money  paid,  together  with  6  per 
cent,  per  annum  interest  added. 

All  deeds  are  to  contain  a  clause  prohibiting  the  establishment  of 
saloons  to  sell  spiritous  liquors  on  said  property,  and  also  prohibiting  .the 
erection  of  shanties  thereon,  and  that  all  buildings  erected  on  said  prop- 
erty must  be  neat,  modern,  and  attractive,  the  plans  of  which  must  be 
first  approved  by  the  City  Building  Inspector  of....*,,  in  order  TO  assure 
the  erection  of  only  attractive  homes  thereon. 

The Company  reserves  the  right  to  lay  water,  sewer,  gas,  and 

electric  conduits,  telegraph  and  telephone  lines  and  electric  railroad  lines 

over  and  along  the  streets  of  the Tract,  without  any  expense  to 

lot  purchasers. 

All  deeds  will  accurately  describe  the  property  as  the Tract, 

according  to  the  official  map  thereof,  which  is  to  conform  closely  to  the 
Preliminary  Map  as  above  stated. 

This  contract  is  based  on  a  contract  for  the  sale  of.... acres  of  the 
Rancho. . . .,  said  contract  being  dated. . . .,  and  now  of  record  in  the  office 

of  the  County  Recorder  of County,  California. 

By    t  ^ President. 

All  of  the  above  terms  and  conditions  are  hereby  accepted  by  me. 

....    Purchaser. 


REAL     ESTATE     SELF-TAUGHT  37 

FORM    155— SUBSCRIPTION    AGREEMENT   TO    FORM 

SYNDICATE  TO  PLACE  SUBDIVISION 

ON  THE  MARKET. 

Subscription  Agreement. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  THAT  WHEREAS, 

has  obtained  options  for  the  purchase  of  (here  descnbe  the  premises) 
which  said  options  are  hereby  referred  to  and  by  reference  made  a  part 
hereof;  and, 

WHEREAS,  It  is  the  intention  of  the  said to  form  a  syndicate  for 

the  purchase  of  said  properties,  and  for  the  purpose  of  laying  out  and  sub- 
dividing said  properties  into  lots  of  suitable  si^es,,  and  to  put  said  sub- 
division on  the  market  for  sale,  and  to  sell  saia  tots  in  said  subdivision  with 
the  greatest  possible  expedition,  and,  in  order  to  protect  the  various  in- 
terests that  may  be  represented  in  said  syndicate  and  in  order  to  accomplish 
the  purposes  herein  set  forth,  it  is  the  intention  to  have  the  title  to  the 

said  properties  taken  in  the  name  of  the Trust  Company,  with  a 

declaration  of  trust  by  said  company  in  favor  of  the  beneficiaries  who  sub- 
scribe the  money  for  the  purchase  of  said  property;  and, 

WHEREAS,  It  is  estimated  that  the  cost  of  purchasing  said  properties, 
including  the  expense  of  grading  and  improving  the  land,  subdividing  the 
same,  and  opening,  laying  out  and  improving  the  avenues,  streets  aind 
parks,  will  be,  and  shall  not  exceed  ....thousand  dollars;  and, 

WHEREAS,  It  is  the  intention  of  said....  to  have  subscribers  hereto 
take  shares  or  undivided  interests  in  the  beneficial  title  to  said  properties, 
and  for  that  purpose  the  total  amount  hereinbefore  estimated  is  divided 

into shares  or  parts  of  One  Thousand  Dollars  ($1^000.00)  each,  and 

the  said  Trust  Company,  as  such  trustee,  will  issue  to  each  subscriber  a 
declaration  of  trust  showing  in  apt  and  appropriate  language  the  amount 
of  such  beneficiary  interest,  and  the  shares  or  parts  taken  by  each  subscriber 
respectively,  and  such  other  matters  as  may  be  decided  upon;  it  being 
distinctly  understood  and  agreed  that  said  shares  are  not  assessable  in 
any  way  whatsoever,  and  that  the  total  liability  of  any  subscriber  hereto  is 
limited  to  the  exact  amount  of  the  subscription  made  by  him ;  and  that  the 
said  Trust  Company  shall  not  be  liable  in  any  event  beyond  the  amounts 
of  money  collected  by  it  properly  applicable  to  disbursements  hereunder, 
nor  to  issue  any  certificate  of  unqualified  ownership,  until  said  property 
shall  have  been  fully  paid  for,  and  an  unincumbered  title  thereto  is  in- 
vested in  it;  and, 

WHEREAS,  The  said agrees  to  turn  over  to  the  subscribers 

hereto  said  options  for  the  purchase  of  said  lands,  reserving  to  himself, 

however,  the  commission  therein  agreed  to  be  paid  by  the  aforesaid ; 

and, 

WHEREAS,  It  is  understood  and  agreed  that  the  owners  of  said  prop- 
erties, and  the  said  agent may  subscribe  for  shares 

in  said  syndicate,  and  that  the  amount  of  the  first  cash  payment  on  such 
subscriptions  respectively  may  be  deducted  from  the  cash  amounts  other- 
wise coming  to  them  under  the  terms  of  said  options  and  without  the  ne- 
cessity of  depositing  the  thirty-five  per  cent.  (35%)  of  said  subscriptions 
in  cash  as  hereinafter  provided ;  and, 

WHEREAS,  It  is  the  intention  to  have  said act  as 

agent  for  the  beneficiaries  and  the  trustee,  and  in  handling  said  subdivision 
and  advertising  the  same  for  sale,  and  selling  the  lots  therein,  and  the 

said agrees  to  act  as  an  exclusive  sales  agent  for  the 

sale  of  said  properties  and  to  advertise  said  properties  extensively  in  the 
press  of  Los  Angeles  and  otherwise,  and  to  use  his  best  endeavors  to  sell 
the  lots  in  said  subdivision,  and  the  said  also  agrees  to 


38  REAL     ESTATE     SELF-TAUGHT 

interest  other  agents  in  the  sale  of  said  lots,  and  to  pay  such  agents  for 
services  actually  rendered  by  them  reasonable  commissions  upon  the  sales 
effected  by  them,  and  otherwise  to  devote  reasonable  time  and  attention  to 
the  business  of  said  subdivision  and  to  the  interests  of  the  beneficiaries 
herein,  so  as  to  produce,  at  the  earliest  practicable  time,  the  greatest  re- 
turn to  the  beneficiaries  or  subscribers  hereto ;  and  in  consideration  oif  the 

promises  and  covenants  on  the  part  of  said  it  is  hereby 

agreed  that  he  shall  receive  from  the  said Trust  Com- 
pany, as  such  trustee,  a  commission  of  ten  per  cent  (10%)  upon  all  sales 
made  of  any  and  all  lots  in  said  subdivision,  and  for  contracts  or  deeds 
which  shall  be  issued  by  said  trustee,  said  ten  per  cent,  to  be  payable  out 
of  the  cash  proceeds  received  upon  the  sale  or  disposition  of  any  of  such 
lots  so  sold  respectively;  said  agency  to  continue  until  the  termination  of 
the  trust  hereinbefore  referred  to,  and  specifically  set  forth  and  described 
in  the  declaration  of  trust,  reference  to  which  is  hereby  made ;  and, 

WHEREAS,  It  is  the  intention,  of  the  subscribers  hereto  to  have  an 
executive  committee  composed  of  three  of  the  subscribers  hereto  to  be 
appointed  by  a  two-thirds  vote  of  the  subscribed  shares,  each  share  being 
entitled  to  one  vote;  or  such  committee  shall  be  appointed  by  the  written 
consent  of  the  holders  of  two-thirds  of  the  subscribed  shares,,  the  specific 

duties  and  powers  of  said  committee  to  be  determined  by  said 

Trust  Company. 

Now,  THEREFORE,  We,  whose  names  are  undersigned,  in  consideration 
of  the  mutual  promises  and  covenants  herein  contained,  and  of  the  sub- 
scription herein  stated,  agree  each  with  the  other  to  subscribe,  and  do 
hereby  subscribe  for  the  shares  and  in  the  amount  set  opposite  our  names 
respectively,and  agree  to  pay  the  amount  of  our  respective  subscriptions  in 
the  following  manner,  to-wit : 

35%  in  cash  on  or  before  April  10,    1906. 

10%  thereof  on  or  before  three  months   from   April   10,    1906. 

10%  thereof  on  or  before  six  months  from  April  10,  1906. 

15%  thereof  on  or  before  one  year  from  April   10,   1906. 

15%  thereof  on  or  before  two  years  from  April  10,   1906. 

15%  thereof  on  or  before  three  years  from  April  10,  1906. 
Provided,  however,  that  the  subscribers  shall  be  notified  by  the  said 
trustee  at  least  ten  days  before  any  such  installments,  except  the  first, 
shall  become  due  and  payable,  said  notice  to  be  given  by  sending  a  letter 
to  each  subscriber  at  the  address  designated  in  this  subscription  agreement, 
or  at  such  other  address  as  may  from  time  to  time  be  left  with  said 

Trust  Company ;  it  being  understood  that  if  the  sales 

of  lots  shall  proceed  with  sufficient  rapidity,  it  will  be  unnecessary  to  call 
for  all  the  balance  of  the  subscriptions  hereinbefore  stated,  and  in  such 
event  the  proceeds  of  the  sales  of  lots  shall  be  applied  (after  the  payment 
of  other  expenses  as  provided  in  the  declaration  of  trust),  toward  th»e 
payment  of  installments  and  principal  and  interest  which  may  be  due  or 
become  due  on  the  purchase  price  of  said  property,  and  towards  the  cost 
of  such  improvements  or  other  expenses  as  may  be  directly  connected  with 
the  handling  of  said  property.  All  subscriptions  hereunder  shall  be  pay- 
able at  the  office  of  the Trust  Company  of  Los  Angeles, 

California,  or  at  any  other  place  which  may  be  designated  by  said  Com- 
pany. 

It  is  further  understood  and  agreed  that  said .Trust 

Company  may,  at  its  option,  call  for  only  such  proportion  of  any  install- 
ment herein  agreed  to  be  paid  as  may,  in  the  opinion  of  said 

Trust  Company,  be  necessary  to  meet  the  deferred  payments  of  the  pur- 
chase price,  interests,  costs  and  expenses  which  may  then  be. due  or  grow 
due. 

It  is  further    understood    and  agreed  that  when    all  of  the  said  prop- 


REAL     ESTATE     SELF-TAUGHT 


39 


erties  shall  have  been  paid  for  in  full,  including  all  costs  and  expenses 
of  improvements,  and  the  handling  of  said  properties,  the  profits  or 

dividends  thereafter  earned  by  the  syndicate  and  received  by  said. 

Trust  Company  shall  be  distributed  pro  rata  among  the  subscribers  hereto 

every  three  months,  after  deducting  the  then  accrued  costs  of  said 

Trust  Company  in  connection  with  the  handling  of  said  trust. 

Each  subscription  is  made  upon  the  distinct  understanding  and  agree- 
ment that  if  the  whole  sum  of  thousand  dollars  is 

not  subscribed  on  or  before  the day  of ,  1906,  then  the  sub- 
scription of  each  of  the  parties  hereto  shall  be  and  is  hereby  declared  null 
and  void  and  of  no  effect  whatever,  and  whatever  cash  payments,  may 
have  been  made  by  any  of  the  subscribers  hereto  prior  to  said  date,  s-iiall, 
in  the  event  of  such  subscription  agreement  becoming  ineffective,  be  re- 
turned to  the  persons  making  such  payments  respectively. 

Dated  at  Los  Angeles,  California,  this day  of 


FORM  NO.  156— SALES  REPORT  OF  TRACT  AGENT. 

Brown  &  Jones,  Room  3,  Dunn  Block,  Los  Angeles,  Cal. 

Lot  No.  12,  Block  A,  Briswalter  Tract;  Price  $1,000;  Purchaser,  Daniel 
Draper ;  Address  1 127  Ingraham  Street ;  Phone,  Home  608 ;  Am't  Deposited 
$100;  Terms  $350  cash;  Balance  $650  in  one  and  two  years,  with  7%  in- 
terest, payable  quarterly.  Name  of  party  to  whom  deed  or  contract  is 
to  be  made,  Daniel  Draper.  Will  call  at  office  tomorrow  at  10:30  A.  M. 
Date,  May  10,  1906. 

TIMOTHY  TILDEN,  Trad  Agent. 


FORM  NO.  157— RULING  FOR  PAYMENTS  ON  BACK  OF  LOT 

CONTRACT. 

Sold  to 

Mr*  \J+  ^jLC**// co«j  .—-—---•- — .....«.—.—.--«.—....——  -- 

For  $ -• Lot  No. * 


Date  Paid 

Amount 
Paid 

Interest 
Paid 

To  Whom  Paid 

! 

40  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  158— RULING  ON  ENVELOPE  TO  CONTAIN  CONTRACT 

(Trad)... 


Lot. 


.Blk.. 


BOWEN  &  DOLTON 

IN   ACCOUNT    WITH 


(Name). 


DATE 


Interest Per  Cent.  Payable  Quarterly-Semi- Annually 


To  Contract-Deed 

By  Cash  Payment 

To  Balance  due  onCont.-Mtg. 

FORM  NO.  159— BUILDERS  EXCHANGE;  (SUGGESTIONS  AS  TO 
CONSTITUTION  AND  BY-LAWS.) 

OBJECTS. 

First. — To  join  in  one  association  all  mechanics,  manufacturers  and 
dealers  of  good  repute,  doing  business  in  the  city  and  -county  aforesaid, 
whose  vocation  connects  them,  wholly  or  generally,  with  the  industry  of 
building,  either  as  an  employing  contractor  in  any  branch  of  the  building 
business,  or  as  a  manufacturer  of,  or  dealer  in  material  used  and  employed 
•in  the  erection  of  buildings,  or  other  structures. 

Second. — To  establish  and  maintain  among  the  individuals  so  as- 
sociated, a  just  and  equitable  system  of  dealing,  and  a  uniformity  in  com- 
mercial usages  by  rules  and  regulations ;  to  acquire,  preserve  or  disseminate 
valuable  information  regarding  the  business  in  which  they  are  severally 
engaged. 

Third. — To  procure  (either  by  lease  or  purchase),  furnish  and  main- 
tain suitable  rooms  for  the  use  of  its  members  for  meeting  rooms,  offices, 
and  other  purposes. 

Fourth. — To  establish  and  enforce  a  system  cwf  arbitration  for  the  set- 
tlement of  disputes  or  misunderstandings  which  may  arise  between  its 
members. 

The  term  of  existence  of  this  Exchange  is  to  be  FIFTY  YEARS,  from 
and  after  the  filing  of  the  certificate  of  incorporation. 

No  shares  of  stock  or  individual  right  in  the  property  of  this  Ex- 
change shall  exist  or  be  acquired  during  its  existence. 


REAL     ESTATE     SELF-TAUGHT  41 

But  the  property  belonging  to,  and  in  the  name  of  "The  Builders'  Ex- 
change," shall  be  held  in  trust  by  the  Directors  for  this  Exchange,  and  shall 
not  be  diverted  from  the  purposes  and  intentions  for  which  it  was  or- 
ganized. 

MEMBERSHIP. 

Any  person  creditably  and  practically  engaged  as  an  employing  con- 
tractor in  any  trade  connected  with  the  business  of  building,  or  in  manu- 
facturing, or  dealing  generally  in  building  material,  is  eligible  to  mem- 
bership in  this  Exchange,  and  may  be  admitted  as  provided  in  the  By- 
Laws  of  the  Exchange. 

A  copartnership  or  corporation  may  become  a  member  of  the  Exchange 
as  one  person,  in  the  manner  provided  for  the  election  and  admission 
of  •members. 

Such  copartnership  may  be  represented  by  any  member  thereof;  but 
a  corporation  shall  be  represented  only  by  some  officer  duly  authorized  to 
act  for  them.  Neither  a  copartnership  nor  a  corporation  is  entitled  to 
but  one  vote  on  any  question. 

The  fee  for  admission  to  this  Exchange  is  Twenty-five  Dollars 
($25.00),  until  the  membership  reaches  two  hundred. 

The  fee  will  then  be  Fifty  Dollars  ($50.00),  until  the  mem- 
bership reaches  four  hundred,  after  which  time  it  will  be  One  Hun- 
dred Dollars  ($100.00). 

The  dues  to  be  paid  by  each  member  are  Twenty-four  Dollars  ($24.00) 
per  annum,  payable  semi-annually,  in  advance,  on  or  before  the  third 
Monday  of  February  and  August  of  each  year,  and  mustl  be  paid  before 
the  annual  or  semi-annual  meeting,  to  entitle  the  member  to  vote  or  take 
part  therein. 

POWERS  OF  DIRECTORS. 

The  Board  of  Directors  have  power  to  adopt  By-Laws,  Rules  and 
Regulations  for  the  management  of  the  affairs  of  the  Exchange,  not  in 
conflict  with  the  laws  of  the  State,  and  amend  or  repeal  the  same,  sub- 
ject to  the  approval  of  the  Exchange,  by  a  majority  vote  of  the  members 
present  at  the  next  regular  meeting  of  the  members  thereafter,  or  at  a 
special  meeting  duly  called  for  that  purpose. 

Second. — To  fill  all  vacancies  which  may  occur  in  its  own  body,  until 
the  next  election. 

Third. — To  have  and  exercise  a  supervisory  care  over  the  affairs  of 
the  Exchange  and  its  members;  to  designate  the  bank  in  which  the 
funds  of  the  Exchange  shall  be  deposited,  and  require  the  Treasurer  to 
keep  them  deposited  there,  and  to  change  the  same  when  in  their  judgment 
the  interest  of  the  Exchange  requires  it. 

Fourth. — They  shall  hear,  examine  into,  and,  if  possible,  settle  all 
disputes  betweep  members  when  they  can  do  so  to  the  satisfaction  of  the 
parties  concerned ;  otherwise  direct  the  parties  to  submit  the  matter  in 
controversy  to  arbitration  in  the  usual  manner,  or  as  provided  in  the  By- 
Laws. 

Fifth. — To  hear  and  determine  all  charges  brought  against  any  member 
for  a  violation  of  the  Laws,  Rules  and  Agreements,  for  any  unbusiness- 
like conduct,  or  for  any  other  cause,  or  to  cause  the  same  to  be  heard 
and  determined  by  a  committee  to  be  appointed  by  the  President  from 
among  the  members  of  the  Exchange,  subject,  however,  to  revision  by 
the  Exchange  as  a  body  at  the  next  or  a  subsequent  meeting.  And  the 
said  board  shall,  when  any  charges  are  preferred  by  one  member  against 
another,  proceed  to  hear  and  determine  the  same  without  delay,  or  appoint 
a  committee  for  that  purpose,  which  committee  shall  have  the  powers  pro- 
vided for  in  the  By-Laws. 

Sixth. — To  receive,  hold  in  trust  and  invest  such  funds  of  Individual 
members  as  may,  under  the  provisions  of  the  By-Laws,  be  placed  in  their 


42  REAL     ESTATE     SELF-TAUGHT 

hands  for  that  purpose,  and  in  the  manner  and  form,  and  subject  to  all 
the  conditions  therein  prescribed. 

Seventh. — To  obtain  by  lease  or  purchase,  and  to  hold  in  trust  for 
and  in  the  name  of  "The  Builders'  Exchange,"  any  real  or  personal  prop- 
erty necessary  for  the  use  or  benefit  of  the  Exchange,  and  to  mortgage, 
sell,  lease  or  otherwise  dispose  of  the  same,  whenever  in  their  judgment 
it  may  be  necessary  to  do  so ;  and  they  are  vested  with  full  power  to  appro- 
priate the  funds  and  manage  the  affairs  of  "The  Builders'  Exchange"  sub- 
ject to  the  laws  of  this  State,  and  the  By-Laws  and  Rules  of  the  Ex- 
change. 

SUNDRY  PROVISIONS. 

Neither  the  Board  of  Directors  nor  the  members  of  the  Exchange 
have  power  to  pass  any  By-Law  or  Rule  abridging  the  right  of  any 
members  to  conduct  or  transact  his  business  in  such  manner  as  he  shall 
deem  just  and  proper,  unless  such  law  or  rule  shall  have  received  the 
affirmative  consent  of  at  least  three-fourths  of  all  the  members  of  the  Ex- 
change. 

Due  notice  of  the  passage  of  any  such  By-Law;  or  Rule  is  to  be  given 
to  each  member  in  writing  (or  be  mailed  to  him  at  his  address,  as  given 
to  the  Secretary),  at  least  two  weeks  before  the  same  shall  be  in  force, 
and  a  minute  to  that  effect  made  in  the  records. 

Any  member  of  the  Exchange  may  propose  an  amendment  to  the  By- 
Laws,  and  the  same  shall  be  acted  on  at  the  next  regular  meeting  of  the 
Board,  after  having  been  posted  in  the  rooms  of  the  Exchange!  for  one 
week;  or  any  member  may  propose  an  amendment  at  a  meeting  of  mem- 
bers, and  the  same  having  been  first  posted  in  the  rooms  of  the  Exchange 
for  one  month  previous  to  the  meeting,  shall  be  acted  upon;  and  if  it 
receives  a  two-thirds  vote  of  the  members  present  it  will  become  a  law. 

The  removal  from  the  State  of  any  officer  or  Director,  or  the  volun- 
tary absence  from  three  successive  meetings  without  leave  from  the 
Board,  of  any  Director  or  officer  required  to  be  present  at  such  meetings, 
shall  be  sufficient  cause  for  their  removal  from  office;  and  they  may  be 
so  removed  in  accordance  with  the  provisions  of  the  law  of  this  State, 
either  by  the  Board  of  Directors  or  by  the  members. 


FORM  NO.  160— PETITION  TO  INCORPORATE  TOWN. 

PETITION. 

Notice  is  hereby  given  that  the  following  petition  will  be  presented  to 
the  Board  of  Supervisors  of  Los  Angeles  County,  California,  at  the  reg- 
ular meeting  of  said  Board,  to  be  held  at  10  o'clock  a.  m.  on  Monday, 
April  30,  1906,  in  the  office  of  the  said  Board,  in  the  Court  House,  of  the 
County  of  Los  Angeles,  California. 

To  the  Honorable  Board  of  Supervisors  of  Los  Angeles  County,  State 
of  California: 

The  undersigned  petitioners  respectfully  represent : 

First,  That  they,  and  each  of  them,  are  bona  fide  residents  of  and 
within  the  territory  hereinafter  described  and  proposed  for  municipal  cor-* 
poration,  and  that  they,  and  each  of  them,  are  qualified  electors  of  the  said 
County  of  Los  Angeles,  State  of  California. 

Second,  That  the  following  is  a  particular  description  of  the  boun- 
daries of  the  territory  proposed  for  municipal  corporation : 

Beginning  at  the  intersection —   (Description). 

Third,  That  your  petitioners  believe  that  the  interest  of  the  in- 
habitants residing  within  the  boundaries  of  the  proposed  municipal  cor- 
poration, above  described,  and  the  interests  of  all  owners  of  property 


REAL     ESTATE     SELF-TAUGHT  43 

within  said  boundaries  above  mentioned,  will  be  subserved  and  prompted 
by  its  incorporation  as  a  city  of  the  sixth  class,  to  be  named  and  entitled 
"The  City  of  Watts." 

Fourth,  That  said  portion  of  Lps  Angeles  County  so  described  and 
bounded  or  any  part  thereof,  is  not  incorporated  as  a  municipal  corpora- 
tion, or  any  part  of  a  municipal  corporation,  and  there  are  now  living  and 
residing  within  the  boundaries  of  said  proposed  municipal  corporation  more 
than  two  thousand  inhabitants. 

Fifth,  That  there  is  attached  to  this  petition  an  affidavit  of  (3)  three 
qualified  electors  verifying  that  the  said  petition  has,  and  bears  the  re- 
quired number  of  signatures  of  qualified  electors. 

Wherefore,  your  petitioners,  being  more  than  fifty  qualified  electors 
of  Said  County  of  Los  Angeles  and  residents  within  the  limits  p<f  the  cor- 
poration hereby  proposed  and  petitioned  for,  pray  that  that  portion  of  Los 
Angeles  County,  State  of  California,  lying  within  the  boundaries  herein- 
before described,  may  be  incorporated  as  a  municipal  corporation  of  the 
sixth  class  under  the  name  and  style  of  "The  City  of  Watts,"  under  and  by 
virtue  of  the  provisions  of  an  Act  of  the  Legislature  of  the  State  of  Cali- 
fornia, entitled,  "An  Act  to  provide  for  the  organization,  incorporation  and 
government  of  municipal  corporations,"  approved  March  13,  1883,  and  acts 
amendatory  and  supplemental  thereto.  And  further  pray  that  to  that  end 
your  Honorable  Body  take  the  steps  necessary  under  the  aforesaid  act  and 
acts  amendatory  thereof  and  supplemental  thereto  to  cause  an  election  to 
be  held  in  said  territory  included  in  said  proposed  corporation  in  accordance 
with  law. 

Dated  this  5th  day  of  April,  A.  D.,  Nineteen  Hundred'  and  Six. 

W.  M.  Kellogg,  C.  W.  Curran,  et  al. 

State  of  California,  County  of  Los  Angeles,  ss. 

S.  J.  Lord,  C.  W.  Curran,  A.  H.  Trimble,  each  being  first  duly  sworn, 
each  for  himself  and  not  one  for  the  other,  deposes  and  says : 

I  am  a  qualified  elector  of  the  County  of  Los  Angeles,  State  of  Cali- 
fornia, and  reside  within  the  limits  of  the  territory  described  in  Section 
II  of  the  foregoing  petition  for  incorporation,  and  was  then  and  since 
have  been  such  elector  and  resident  as  aforesaid ;  that  I  know  d(f  my  own 
knowledge  that  the  facts  stated  in  said  petition  are  true  and  each  signer 
thereof  is  a  qualified  elector  of  said  county  and  a  resident  within  the  limits 
of  the  territory  described  in  Section  II  of  said  petition  as  the  territory  to 
be  included  within  said  proposed  municipal  corporation,  and  that  each  and 
everyone  of  said  signers  was  such  elector  and  resident  when  he  signed  his 
name  to  said  petition  and  has  continued  to  be  such  elector  and  resident, 
I  know  of  my  own  knowledge  that  each  signature  to  said  petition  is  the 
true  and  genuine  signature  of  the  person  whose  name  it  purports  to  be 
and  that  the  identical  petition  to  which  this  is  attached  was  and  is  actually 
signed  by  more  than  fifty  persons,  each  of  whom  is  both  a  qualified  elector 
and  A  resident  within  said  proposed  municipal  corporation,  as  the  boun- 
daries thereof  are  described  and  set  forth  in  said  petition. 

S.  J.  LORD, 

C.  W.  CURRAN, 

A.  H.  TRIMBLE* 

Subscribed  and  sworn  to  before  me  this  5th  day  of  April,  1906. 

(SEAL)  CAROLINE  H  SMITH, 

Notary  Public  in  and  for  Los  Angeles  County,   California. 


44  REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  161— PETITION  FOR  REMOVAL  OF  POST  OFFICE  TO 
MORE  CENTRAL  LOCATION. 

SATICOY,  CAL.,  May  10,  1906. 
To  the  Hon.  Fourth  Assistant  Postmaster  General,  Washington,  D.  C. : 

We,  the  undersigned  citizens  and  business  men,  living  within  the  de- 
livery of,  and  receiving  our  mail  matter  at,  the  Saticoy  Post  Office,  do  most 
respectfully  petition  that  said  post  office  be  removed  from  its  present  lo- 
cation to  a  more  convenient  portion  of  the  town. 

We  do  most  respectfully  represent  and  direct  your  attention  to  the 
following  reasons  for  the  desired  removal. 

That  the  said  Post  Office  is  now,  and  has  been  for  a  considerable  time, 
located  at  the  extreme  eastern  portion  of  the  said  town  of  Saticoy,  Cali- 
fornia, thereby  causing  each  and  all  of  the  said  undersigned  citizens  and 
business  men  great  and  unnecessary  inconvenience  in  going  to  and  re- 
turning from  said  Post  Office,  as  they  have  business  to  transact  therewith; 

That  a  building  or  room  as  secure,  commodious  and  desirable  as  the 
one  now  used  by  the  government  for  the  transaction  of  its  postal  business 
in  Saticoy,  can  be  obtained  in  a  more  convenient  and  central  location 
in  said  town. 

III. 

That  the  building  or  room  that  may  be  so  secured  is  located  within  a 
reasonable  distance  from  the  depot  of  the  Southern  Pacific  Railroad  Com- 
pany, which  Company,  our  petitioners  are  informed  and  verily  believe,  is 
under  contract  to  carry  and  deliver  the  mails  as  the  same  arrive  at,  and 
depart  from,  said  town. 

That  said  proposed  change  and  removal  will  meet  with  the  approval 
and  approbation  of  the  vast  majority  of  the  patrons  of  said  Post  Office. 

Wherefore,  your  petitioners  pray  that  the  desired  change  and  removal 
in  the  location  of  said  Post  Office  in  the  town  of  Saticoy  may  be  ordered 
and  effected. 


REAL    ESTATE    SELF-TAUGHT 
FORM  No.   162 — PRINTED  BACK  OP  VOUCHER. 


45 


Voucher  No  ...........  .........  ...  Check  No. 

Month  ................................  Amt.  $ 

Date  of  Payment 

In  favor  of 


FEDERAL  REALTY  COMPANY. 


Cash  

Operating  Expenses  

General  Expenses  

Total  

Cash  

Bills  Payaable  . 

Voucher  Account  

Total  Credits  

46 


REAL    ESTATE      SELF-TAUGHT 


I 


REAL     ESTATE     SELF-TAUGHT 


47 


Voucher 
Account 

Operating 
Expenses 

General 
Expenses 

CO 

a 

O 

J  fe 

Sundry 

fl 

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4) 

15 
Q 

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co    C 
O     O 


a -8 
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>  55 


«§ 


48 


REAL     ESTATE     SELF-TAUGHT 

FORM  NO.  165— BALANCE  SHEET. 


Balance  Sheet 

of 

JOHN  NEWMAN 
For  Year  Ending  December  31,   1906. 


Ledger 
Titles 

Trial  Balance 
Dr.                 Cr. 

Financial  Accts. 
Resor.        Liab. 

Speculative 
Accts. 
Loss             Gain 

Real  Estate  
Furniture  

$30000. 
360. 

$30000. 
360. 

Gen.  Expense   .  . 
Opr.  Expense   .  . 
Taxes  &  Ins.     .  . 
Interest  

225. 
560. 
150. 

480 

$225. 

560. 
150. 
480. 

Bills  Recvb  

900 

900. 

Accts.  Recvb.    .  . 
Cash     

38.75 
871  25 

38.75 
871.25 

J.  N's  Capital 
Acc't  
Bills  Paybl  
Voucher  Acct.  .  . 
Commissions 
Rentals          .... 

$21778. 
8000. 
35. 
1222. 
2550 

$8000. 
35. 

$1222 
2550 

$33585.     $33585. 

$32170.      $8035. 

$1415.     $3772. 

Total  gains $3772 

Total  losses 1415- 


Net  gain  for  year $2357. 

Total  resources $32170. 

Total  liabilities •  8035- 

Present  worth    •  •  24135- 

John  Newman's  Net  Investment 21778. 

Net  gain '. $2357. 

Dividing  $2357  by  1%  of  $21778  (or  $217.78)  gives  .1082  as  rate 
per  cent  of  earnings  for  year. 


REAL     ESTATE     SELF-TAUGHT 


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50  REAL    ESTATE    SELF-TAUGHT 

FORM  NO.  167— ANOTHER  FORM  OF  DECLARATION  OF  TRUST 
FOR  PLACING  SUBDIVISION  ON  MARKET. 

DECLARATION  OF  TRUST. 

KNOW  Au,  MEN  BY  THESE  PRESENTS.  :— That  the  FEDERAL  TITLE 
COMPANY,  a  corporation  organized  and  existing  under  and  by  virtue 
of  the  laws  of  the  State  of  California,  and  having  its  principal  place  of 
business  at  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  Cali- 
fornia, hereinafter  called  the  "Trustee,"  hereby  certifies  and  dclares  that 
,Kt  has  received  and  accepted  the  assignment  and  transfer  to  it,  of  that  cer- 
tain agreement  for  the  purchase  of  real  estate  made  and  entered  into  on 
th  I2th  day  of  June,  A.  D.  1906,  between  L.  M.  Sellers,  of  the  city  of  Los 
Angeles,  County  of  Los  Angeles,  State  of  California,  and  Alonzo  Byers, 
of  the  same  place,  which  agreement  is  in  words  and  figures  as  follows, 
to-wit : — 

THIS  AGREEMENT,  made  and  entered  into  this  I2th  day  of  June, 
in  the  year  of  our  Lord  one  thousand  nine  hundred  and  six,  BETWEEN 
L.  M.  Sellers  of  Los  Angeles  City  and  County,  State  of  California,  and 
party  of  the  first  part  and  Alonzo  Byers  of  Los  Angeles  City  and  County, 
State  of  California,  the  party  of  the  second  part. 

WITNESSETH  :— That  the  said  party  of  the  first  part,  in  consideration 
of  the  covenants  and  agreements  on  the  part  of  the  said  party  of  the 
second  part  hereinafter  contained,  agrees  to  sell  and  convey  unto  tlte 
said  party  of  the  second  part,  and  the  said  second  party  agrees  to  buy,  all 
that  certain  lot  or  parcel  of  land,  situate  in  the  County  of  Los  Angeles 
and  State  of  California,  and  bounded  and  particularly  described  as  follows, 
to-wit : 

(DESCRIPTION.) 

for  the  sum  of  Twenty  Thousand  ($20,000)  Dollars,  Gold  Coin  of  the 
United  States;  and  that  the  said  party  of  the  second  part,  in  considera- 
tion of  the  premises,  agrees  to  pay  the  said  party  of  the  first  part  the 
said  sum  of  Twenty  Thousand  ($20,000)  Dollars,  as  follows,  to-wit: 

Two  Hundred  Fifty  ($250.00)  Dollars,  cash  in  hand  paid,  the  re- 
ceipt whereof  is  hereby  acknowledged;  two  thousand  two  hundred  fifty 
($2,250.00)  Dollars  upon  the  delivery  to  the  second  party  of  an  unlimited 
certificate  of  title,  issued  by  the  Title  Insurance  and  Trust  Co.,  of  the 
City  of  Los  Angeles,  showing  the  above  described  property  to  be  free 
from  all  incumbrances  to  date,  and  the  title  thereto  to  be  vested  in  the 
said  party  of  the  first  part;  three  thousand  ($3,000)  Dollars  on  or  before 
six  months  from  date  of  this  agreement ;  three  thousand  ($3,000)  Dollars 
on  or  before  one  year  from  the  date  of  this  agreement;  five  thousand 
seven  hundred  fifty  ($5,750)  Dollars  on  or  before  two  years  from  date 
of  this  agreement;  and  five  thousand  seven  hundred  fifty  ($5,75°)  Dollars 
on  or  before  three  years  from  date  of  this  agreement,  together  with  in- 
terest on  all  deferred  payments  at  the  rate  of  six  (6)  pet  cent,  per  annum, 
interest  payable  quarterly. 

And  the  said  party  of  the  second  part  agrees  to  pay  all  State  and 
County  taxes  or  assessments  of  whatsoever  nature,  which  are  or  may  be- 
come due  on  the  premises  above  described. 

It  is  further  agreed  that  time  is  the  essence  of  this  contract,  and  in 
the  event  of  a  failure  to  comply  with  the  terms  hereof,  by  the  said  party 
of  the  second  part,  the  said  party  of  the  first  ^part  shall  be  released  from 
all  obligations  in  law  or  equity  to  convey  said  property,  and  said  party 
of  the  second  part  shall  forfeit  all  right  thereto,  and  to  moneys  thereto- 
fore paid  under  this  contract  and  his  interest  in  or  to  said  moneys,  and 
to  said  property  shall  thereupon  immediately  cease,  as  fully  as  if  said 


REAL     ESTATE     SELF-TAUGHT  51 

money  had  never  been  paid,  or  this  agreement  entered  into.  And  the 
said  party  of  the  first  part  on  receiving  such  payment  at  the  time  and 
in  the  manner  above  mentioned,  agrees  to  execute  and  deliver  to  the 
said  party  of  the  second  part,  or  to  his  heirs,  or  assigns,  a  good  and 
sufficient  deed  of  grant,  bargain  and  sale,  conveying  to  said  party  of  the 
second  part,  or  his  assigns,  the  title  to  said  premises. 

Upon  the  payment  of  eight  thousand  five  hundred  ($8,500)  Dollars 
hereunder,  together  with  interest  on  all  deferred  payments  herein,  first 
party,  or  his  assigns,  will  execute  and  deliver  to  the  said  party  of  the 
second  part,  or  his  assigns,  a  good  and  sufficient  deed  of  grant,  convey- 
ing to  said  second  party  or  his  assigns,  the  above  described  property, 
subject  however,  to  mortgage,  executed  by  said  second  party  or  his  as- 
signs, in  favor  of  said  first  party,  which  said  mortgage  shall  be  a  first 
lien  on  the  above  described  premises,  and  shall  secure  the  payment 
of  two  promissory  notes,  each  in  the  sum  of  five  thousand  seven  hundred 
fifty  ($5,750)  Dollars,  one  to  mature  on  or  before  two  years  from  date 
hereof  and  the  other  on  or  before  four  years  from,  date  hereof,  each  of 
said  notes,  to  bear  interest  at  the  rate  of  six  (6)  per  cent  per  annum, 
which  said  interest  shall  be  payable  quarterly.  The  said  mortgage  so  to 
be  executed,  together  with  the  said  notes  shall  be  of  the  form  employed 
by  the  said  Title  Insurance  and  Trust  Co.  Said  notes  shall  provide  in 
each  case  a  thirty  days'  notice  in  writing  prior  to  payment  thereof  must 
be  given  by  second  party  to  first  party  before  such  payment  can,  be 
made.  At  the  expense  of  second  party  at  the  time  of  the  execution  of 
said  mortgage  said  certificate  of  title  shall  be  continued  by  said  com- 
pany, showing  title  in  said  herein  described  property,  vested  in  second 
party,  subject  to  said  mortgage. 

First  party  agrees  to  release  any  parcel  or  lot  or  subdivision  of  the 
above  premises,  having  a  depth  not  exceeding  one  hundred  and  fifty 
feet  upon  payment  of  a  sum  of  money  reckoned  at  the  rate  of  sixteen 
dollars  per  front  foot  for  property  on  Belmont  Avenue  ,twelve  dollars 
per  front  foot  on  Carter  Avenue;  and  eight  dollars  per  front  foot  for 
all  other  frontage  on  streets  which  said  property  may  have.  All  moneys 
paid  for  releases  during  the  first  year  hereof  shall  be  applied  on  the  last 
two  deferred  payments  herein.  First  party  agrees  to  join  the  second  party 
in  dedication  of  streets  in  said  property  within  a  reasonable  limit. 

And  it  is  understood  that  the  stipulations  aforesaid  are  to  apply  to 
and  bind  the  heirs,  executors,  administrators  and  assigns  of  the,  respective 
parties. 

IN  WITNESS  WHEREOF,  the  said  parties  of  these  presents  have  here- 
unto set  their  hands  and  seals  the  day  and  year  first  above  written. 

L.  M.  SELLERS.    (SEAL). 
ALONZO  BYERS.    (SEAL) 
Duly  acknowledged. 

That  the  portion  of  the  purchase  price  of  the  property  described  in 
said  agreement  heretofore  paid,  was  paid  by  Alonzo  Byers,  John  Ensign 
and  Charles  Davis,  hereinafter  called  the  "Beneficiaries",  and  no  part 
thereof  has  been  paid  or  is  to  be  paid  by  said  Trustee. 

That  the  said  transfer  and  assignment,  while  absolute  in  form,  is  never- 
theless in  trust  and  said  Trustee  holds  and  shall  hold  said  agreement  in 
trust  for  the  purpose  of  selling  the  property  therein  described  and  ap- 
plying and  disposing  of  the  proceeds  arising  from  the  sale  thereof  as 
hereinafter  specified  and  provided. 

For  the  purpose  of  effecting  the  sale  of  said  real  estate  and  carry- 
ing out  the  trusts  herein  set  forth,  the  said  Trustee  shall  have  the  power 
and  authority: — 

FIRST,  To  sell  and  transfer  the  land  and  premises  described  in  said 


52  REAL     ESTATE     SELF-TAUGHT 

agreement  either  as  a  whole  or  in  parcels  of  one  lot  or  more,  as  per  map 
of  the  Subdivision  of  said  property  recorded  in  Book  2,  Page  100  of  Maps, 
in  the  office  of  the  County  Recorder  of  Los  Angeles  County,  to  such  per- 
son or  persons  and  at  such  price  and  upon  such  terms  as  said  Trustee  shall 
deem  best;  Provided,  that  no  part,  parcel  or  lot  of  said  property  shall 
be  sold  at  a  less  price  than  that  fixed  by  a  schedule  of  prices  to  be  here- 
after agreed  upon  by  and  between  the  said  beneficiaries  and  the  said  Trus- 
tee, which  schedule  of  prices,  when  prepared,  shall  be  affixed  hereto  and 
be  and  become  a  part  hereof,  the  same  as  though  it  were  attached  hereto 
at  the  time  of  the  signing  hereof;  and  provided  further,  that  the  said 
Trustee  shall  not  sell  said  property  or  any  portion  or  parcel  thereof  to 
any  person  or  persons  other  than  of  the  White  or  Caucasian  Race. 

SECOND:  To  impose  conditions,  restrictions  and  covenants  upon  said 
property,  prohibiting  the  sale  thereof  to  objectionable  persons  and  for  ob- 
jectionable purposes,  and  restricting  the  cost,  class  and  location  of  buildings 
thereon, 

THIRD:  To  employ  said  Alonzo  Byers,  or  any  other  person,  firm  or 
corporation  as  it  may  deem  best  as  its  agents  in  the  selling  of  said 
property  and  in  the  transaction  of  the  business  necessary  in  the  adminis- 
tration of  this  trust,  and  the  said  Trustee  shall  not  be  liable  for  afty 
default,  defalcation  or  wrong-doing  by  any  person,  firm,  or  corporation 
which  it  may  employ  as  agents  to  make  sales. 

FOURTH:  To  delegate  to  agents  employed  to  effect  the  sale  of  said 
property,  the  supervision  and  direction  of  all  improvements  of  whatsoever 
kind  or  nature  made  or  placed  thereon ;  the  power  to  appoint  sub-agents 
to  assist  in  making  sales  of  said  property,  also  the  matter  of  directing  the 
advertising  of  said  property  and  placing  the  same  on  the  market,  and 
also  the  right  and  authority  generally  to  represent  the  said  Trustee 
in  marketing  and  selling  said  property;  provided,  that  the  compensation 
to  be  paid  to  such  agent  or  agents  for  handling  said  property  and  per- 
forming all  services  in  connection  therewith,  including  those  specified 
above,  shall  not  exceed  10  per  cent.  o:f  the  selling  price  of  said  prop- 
erty. -.«  ;i 

FIFTH  :  To  grade  or  cause  to  be  graded,  the  streets  laid  out  on  said 
Tract,  and  also  to  put  in  sidewalks  and  curbs,  lay  water  mains  and  pipes 
throughout  said  tract  and  make  and  place  thereon  such  other  improvements 
as  it  shall  deem  best  to  facilitate  the  sale  of  said  property. 

The  said  Trustee  shall  apply  and  dispose  of  the  proceeds  arising  from 
the  sale  of  said  property  as  follows : 

FIRST  :  To  the  charge  of  the  Trustee  for  the  preparation  and  is- 
suance of  this  Declaration  of  Trust  and  for  the  performance  and  execu- 
tion of  the  trusts  herein  set  forth  hereby  fixed  at  $275.00,  which  fees  and 
charges  shall  be  deemed  to  be  earned  upon  the  signing  of  this  Declaration 
of  Trust. 

SECOND  :  To  the  payment  of  the  fees  for  recording  said  agreement 
assigned  to  said  Trustee  as  aforesaid,  and  for  the  recording  of  the  deed 
hereafter  to  be  made  and  received  pursuant  to  said  agreement  and  also 
to  the  payment  of  the  expenses  and  fees  for  obtaining  and  filing  for 
record  any  deeds  for  lots  or  parcels  of  said  land  that  may  be  required  and 
obtained  from  time  to  time  under  the  terms  of  said  agreement,  prior  to 
the  execution  and  delivery  of  the  deed  conveying  the  whole  of  said  tract 
to  said  Trustee,  and  also  for  obtaining  and  recording  any  other  instruments 
that  may  be  required  in  connection  with  this  trust. 

THIRD  :  To  the  payment  of  the  unpaid  portion  of  the  purchase  price 
of  said  real  estate  as  specified  in  agreement  hereinbefore  set  forth  to 
;said  L.  M.  Sellers,  together  with  interest  on  deferred  payments  as  such 


REAL    ESTATE     SELF-TAUGHT  53 

principal  and  interest  shall  become  due  and  payable  under  the  terms  and 
provisions  of  said  agreement. 

FOURTH:  To  the  payment  of  taxes  levied,  assessed  or  imposed  on 
or  against  said  property  and  any  assessments  levied  by  municipal  or  other 
authorities  for  the  improvement  of  said  property,  not  payable  by  pur- 
chasers thereof. 

FIFTH  :  To  the  payment  of  all  bills  for  grading  streets  laid  out 
in  said  Tract  and  for  the  construction  of  sidewalks  and  curbs  thereon 
•and  for  laying  water  mains  or  pipes  and  making  any  other  improvements 
upon  said  property. 

SIXTH  :  To  the  payment  of  commissions  to  agents  effecting  the  sales 
of  said  property  not  to  exceed  10  per  cent,  of  the  selling  price  as  fixed 
by  the  schedule  referred  to  above,  payable  out  of  the  first  payment  made 
on  any  contract  of  purchase. 

SEVENTH  :  The  remainder  of  the  proceeds  received  from  sales  shall 
be  distributed  and  paid  as  follows : 

To  Alonzo  Byers,  1-3  thereof, 

To  John  Ensign  1-3  thereof, 

To  Charles  Davis  .        1-3  thereof, 

Provided,  however,  that  no  distribution  of  any  portion  of  the  pro- 
ceeds arising  from  the  sales  of  said  property  shall  be  made  to  the  bene- 
ficiaries hereunder  until  the  said  Trustee  shall  have  on  hand  a  sufficient 
sum  of  money  accruing  from  said  sales  to  meet  the  payments  that  shall 
become  due  on  the  purchase  price  of  said  property  under  the  provisions  of 
the  agreement  hereinbefore  set  forth.  Any  surplus  in  the  hands  of  said 
Trustee  over  and  above  such  sum  or  sums  shall  be  disbursed  as  dividends 
from  time  to  time  as  the  majority  of  the  interests  hereunder  shall  di- 
rect. 

In  case  the  moneys  received  from  the  sales  of  said  property  shall 
be  insufficient  at  any  time  to  meet  the  payments  that  shall  fall  due  under 
the  provisions  of  the  agreement  set  out  above,  then  the  said  Trustee  shall 
demand  of  the  said  beneficiaries  respectively  their  proportionate  shares  of 
the  sum  or  sums  necessary  to  pay  such  deficiency,  the  share  to  tye  paid  in 
such  case  being  measured  by  their  respective  interests  in  said  property 
as  hereinabove  set  forth.  Should  any  of  the  said  beneficiaries,  however, 
fail  or  default  in  the  payment  of  his  portion  or  share  as  aforesaid,  of 
the  moneys  required  to  be  advanced  to  make  the  payments  in  compliance 
with  the  terms  of  said  agreement,  then  the  said  Trustee  shall  notify  the 
other  beneficiaries  of  such  default  and  they  shall  thereupon  have  the 
right  to  purchase  and  take  over  the  interest  hereunder  of  such  defaulting 
party,  either  jointly  or  with  the  consent  of  the  other  beneficiaries,  and 
such  interest  may  be  taken  by  any  one  or  more  of  the  said  parties  of 
interest;  in  any  event,  if  it  is  necessary  to  protect  his  rights  and  interests 
hereunder  and  in  said  land,  any  one  of  said  beneficiaries  may  advance  the 
share  of  the  party  in  default  and  the  interest  herein  of  the  delinquent  party 
shall  thereafter  be  held  by  said  Trustee  as  security  for  the  sum  or  sums  thus 
paid  and  advanced.  The  defaulting  party  in  such  case  shall  be  entitled  to 
have  refunded  to  him  the  actual  cash  theretofore  paid  hereunder,  without 
interest,  and  upon  such  sum  being  paid,  he  shall  forfeit  all  rightj  title 
and  interest  in  and  to  the  said  land,  and  the  proceeds  of  the  sale  thereof 
and  his  interest  hereunder,  including  the  attendant  obligations  and  bene- 
fits, shall  pass  and  belong  to  the  purchaser  thereof. 

In  the  event,  however,  that  the  other  beneficiaries  hereunder  decline 
to  purchase  the  share  and  interest  of  a  defaulting  party  on  the  terms  and 
conditions  recited  above,  then  the  said  Trustee  shall  sell  such  share  and 
interest  at  public  auction  to  the  highest  bidder  and  the  purchaser  at  such 
sale  shall  be  substituted  in  the  place  and  stead  of  the  party  in  default 


54  REAL    ESTATE     SELF-TAUGHT 

in  his  relation  to  this  trust;  and  shall  thereupon  assume  all  obligations 
and  enjoy  all  benefits  as  beneficiary  hereunder,  incident  to  the  share  and 
interest  thus  acquired.  The  other  beneficiaries  herein  may  be  purchasers 
at  such  public  sale  under  the  same  conditions  as  a  stranger  to  this  trust 

The  sums  received  for  the  interest  of  the  delinquent  party  at  the  pub- 
lic sale,  shall  be  applied  first  to  the  payment  of  all  obligations  and  claims 
attached  hereunder  to  the  share  of  interest  sold,  and  any  surplus  remaining 
shall  be  paid  to  the  party  suffering  default,  and  upon  receiving  such  sum, 
all  of  his  right,  title  and  interest  hereunder  shall  be  forfeited  and  this 
trust  as  to  him,  shall  cease  and  determine. 

The  schedule  of  prices  referred  to  above  may  be  changed  at  any 
time,  and  a  new  schedule  substituting  therefor,  provided  that  such 
new  schedule  shall  not  be  operative  until  signed  by  a  majority  of  the 
parties  hereto. 

The  trustee  shall  be  under  no  obligations  to  make  the  payments  that 
shall  become  due  under  the  aforesaid  agreement  for  the  purchase  of  said 
real  estate,  or  to  pay  the  taxes  or  make  any  other  payments  required  to 
be  made  hereunder,  unless  there  be  sufficient  funds  in  its  hands  to  make 
said  payments. 

This  trust  shall  not  cease  or  determine  until  the  fees  and  expenses 
of  the  said  Trustee  shall  have  been  fully  paid  and  it  shall  have  been 
reimbursed  for  all  expenses  incurred  and  moneys  expended  in  connection 
with  this  trust. 

Every  stipulation  and  agreement  herein  shall  iiiure  to  the  benefit  of 
the  heirs,  executors,  administrators,  successors  and  assigns  of  the  re- 
spective parties. 

IN  WITNESS  WHEREOF,  the  FEDERAL  TITLE  COMPANY  has 
hereunto  caused  its  corporate  name  to  be  subscribed  by  its  President  and 
its  Secretary,  and  its  corporate  seal  to  be  affixed,  this  isth  day  of  June, 
1906. 

FEDERAL  TITLE  COMPANY, 

(SEAL)  By  ARNOLD  NIXON,  President. 

By  ALBERT  BALLES,  Secretary. 

We,  the  undersigned,  being  the  beneficiaries  under  the  above  and  fore- 
going Declaration  of  Trust,  do  hereby  certify  and  declare  that  said  De- 
claration of  Trust  correctly  and  accurately  sets  forth  and  discloses  the 
trusts  under  and  by  which  the  said  Trustee  holds  and  shall  hold  said 
agreement  for  the  purchase  of  real  estate,  and  we  do  hereby  (ratify,  ap- 
prove and  confirm  the  same  in  all  its  parts,  and  do  hereby  make,  constitute 
and  appoint  the  said  FEDERAL  TITLE  COMPANY,  our  true  and  law- 
ful attorney,  irrevocable,  in  our  name,  or  other  wise,  to  do  and  perform 
all  and  every  act  and  thing  whatsoever  requisite  and  necessary  to  be  done 
in  and  about  the  premises  as  fully,  to  all  intents  and  purposes,  as  we 
might  or  could  do  if  personally  present;  hereby  ratifying  an4  confirming 
all  that  our  said  attorney  shall  lawfully  do,  or  cause  to  be  done,  by  virtue 
of  these  presents. 

IN  WITNESS  WHEREOF,  we  have  hereunto  set  our  hands  and  seals 
this  15th  day  of  June,  1906. 

ALONZO  BYERS.  (SEAL). 

JOHN  ENSIGN.  (SEAL). 

CHARLES  DAVIS.    (SEAL). 


REAL    ESTATE     SELF-TAUGHT 


55 


FORM  NO.  168— MISSION  STYLE  ENTRANCE  ARCHWAY,    FLOR- 

ENCITA  PARK,  LOS  ANGELES.      RED  TILE  ROOF, 

PLASTER  SIDES. 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 


AN  INITIAL  FINE  OF  25  CENTS 


> ''i  v* 


WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.OO  ON  THE  SEVENTH  DAY 
OVERDUE. 


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